A process through which a firm seeks to obtain earnings without contributing to production, thus wasting valuable resources, is known as
a. moral hazard.
b. rent seeking.
c. detrimental externality.
d. a defective telescopic faculty.
b
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Which of the following statements is FALSE?
A) Other things being equal, society's overall well-being is reduced when a perfectly competitive industry is monopolized. B) When both a perfectly competitive industry and a monopolist face the same production costs and the same market demand curve,the monopolist offers a lower level of output for sale. C) The profit-maximizing monopolist will always produce only along the inelastic portion of the demand curve, whereas equilibrium in a perfectly competitive industry always occurs along the elastic portion of the demand curve. D) When both a perfectly competitive industry and a monopolist face the same production costs and the same market demand curve, the monopolist charges a higher price for its product than what would be charged in a perfectly competitive situation.
The ability to produce a good or service at a lower opportunity cost than other producers is
A. intellectual property. B. the quota system. C. absolute advantage. D. comparative advantage.
Which of the following is true at each output level for a perfectly competitive firm?
a. MC = AVC = ATC b. MR = MC c. P > AVC d. AR = MR = P e. MR = AR = MC
The long run is best defined as:
A. a period of time sufficiently long that at least one factor of production is fixed. B. the period of time between annual accounting reports. C. a period of time sufficiently long that all factors of production are variable. D. one year or more.