"Government failure" is present when
a. constitutional restrictions block government action that is favored by the majority of voters.
b. political decision-makers try to serve the general public rather than their personal interest.
c. the structure of incentives encourages political decision-makers to undertake actions that conflict with the efficient allocation of resources.
d. the political decision-makers are motivated by something other than good intentions; if they have good intentions, political action will allocate resources efficiently.
C
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The market structure of home video gaming systems is best characterized by monopolistic competition. Quasar Entertainment is one of the producers in this market. The inverse demand for Quasar systems is:
P = 500 - 9.75Q Quasar's cost function is: C(Q) = 0.25Q2 + 6. Determine Quasar's profit maximizing level of output and the price charged to customers. Is the market in a long-run equilibrium?
Which of the following businesses is experiencing economies of scale?
a. With each additional tool Gravel Lane Foundry makes, its long-run average total costs goes up. b. Helena’s Expeditions Inc. could serve more customers if only she could hire more experienced guides. c. Average total costs are declining at Claudia’s Candies over the long-run, thanks to better deals with suppliers. d. Circuit Shack is a well-established business with steady, predictable costs.
The struggle among various producers for the consumer's business called ____________ .
a. socialism b. competition c. incentive d. self-regulation
This form of promotion offers temporary inducements to buy a product or service:
Advertising Publicity Sales promotion Personal selling