In a world of perfect information, if consumers could costlessly contract with private contractors to produce a good and there were no economies of scale,
a. firms would be unnecessary
b. markets would be unnecessary
c. consumers would be unnecessary
d. consumers would face greater production costs
e. firms would be more efficient than the market
A
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The equation of exchange
A. is GDP = C + I + G + Xn. B. never balances. C. states that if M rises by a certain percentage, P must rise by that same percentage. D. is MV = PQ.
Figure 3-20
Refer to . At the equilibrium price, producer surplus is
a.
$480.
b.
$640.
c.
$1,120.
d.
$1,280.
The pattern of recession, recovery, and expansion is called the business cycle.
Answer the following statement true (T) or false (F)
If antitrust legislation is successful, then the monopolistic firm will
A) decrease output and charge a lower price than before. B) increase output and charge a higher price than before. C) increase output and charge a lower price than before. D) decrease output and charge a higher price than before.