The allocative function of price cannot operate unless there is:
A. a significant barrier to entry.
B. either free entry or free exit.
C. both free entry and free exit.
D. neither free entry no free exit.
Answer: C
You might also like to view...
Aggregate demand includes
a. only the quantity of goods and services households want to buy. b. only the quantity of goods and services households and firms want to buy. c. only the quantity of goods and services households, firms, and the government want to buy. d. the quantity of goods and services households, firms, the government, and customer abroad want to buy.
A firm's ______ are costs that increase as quantity produced increases. These costs often show ______ illustrated by the increasingly steeper slope of the total cost curve.
A. fixed costs; opportunity costs B. variable costs; diminishing marginal returns C. fixed costs; technological changes D. variable costs; constant returns to scale
Which of the following conditions must be TRUE so that a firm can price discriminate?
A) There are no other firms in the market. B) The good is a nondurable. C) The good cannot be easily resold. D) All of the above.
Discuss the benefits of international trade and factors that lead to its growth.
What will be an ideal response?