When resources are allocated by markets, profits and losses provide information about
a.which products are priced too high and which are priced too low.
b.which resources are being used productively and which resources should be allocated to other uses.
c.which industries need to be subsidized and which need to be subject to additional regulation.
d.which businesses should be taxed more heavily and which should be subsidized.
b.which resources are being used productively and which resources should be allocated to other uses.
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In 1979, the price of gasoline was $1.389 per gallon and the CPI was 72.6. In 2003, the price of gasoline was $1.589 per gallon and the CPI was 182.9. Find the real price of gasoline in 1979 and 2003 in terms of base period dollars
What will be an ideal response?
In a duopoly with a collusive agreement and in a one-time only game, a firm's profit is largest if it ________ the agreement and if the other firm ________ the agreement
A) complies with; complies with B) complies with; cheats on C) cheats on; complies with D) cheats on; cheats on
Exhibit 4-10 Supply and demand data for apricots Bushels demandedper month Price perbushel Bushels suppliedper month 50 $5 80 55 4 75 60 3 70 65 2 65 70 1 55 Which of the following would occur if the government sets a price floor of $4 in the market shown in Exhibit 4-10?
A. There would be a shortage of apricots. B. Buyers would not purchase all of the apricots that are grown. C. Buyers would purchase more apricots than are currently being supplied. D. Farmers would reduce the number of acres allocated to the growing of apricots.
“In monopolistic ally competitive markets neither allocation nor productive efficiency is realized.” Explain
What will be an ideal response?