Refer to the diagram below. If box E represents government, box C businesses, box D the resource market, and box B the product market, then government purchases of computers, office supplies, and military hardware would be illustrated by arrows:
A. 5 and 6
B. 7 and 8
C. 9 and 10
D. 10 and 11
B. 7 and 8
You might also like to view...
Data Driven Decision Making Kroger Groceries provides store managers flexibility to determine prices for a number of popular items they carry because demand is affected primarily by local conditions that managers are more aware of. To make sure managers
use this discretion wisely, managers are rewarded with bonuses based on quarterly sales. With improvements in data collection and analysis, the "quants" in corporate headquarters can run many small experiments. Doing so allows them to understand nuanced patterns in consumer demand that had been un-noticed previously. How does this affect manager compensation?
In perfect competition, environmental externalities need not distort the allocation of resources providing
a. transactions costs are zero. b. average costs are constant for all output levels. c. firms install pollution control equipment. d. the government sets realistic pollution standards.
Negative externality describes costs that include both the private costs incurred by firms and also the costs incurred by third parties outside the production process
a. True b. False Indicate whether the statement is true or false
?For firms operating in a perfectly competitive market, price must always be greater than marginal revenue.
Indicate whether the statement is true or false.