A perfectly competitive market usually achieves economic efficiency because
a. there are no barriers to entry
b. there are no barriers to entry and all of the goods are perfect substitutes
c. each of the firms in the industry are profit maximizers
d. it is the most fair
e. most buyers in the market have the same level of income
B
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The above figure shows the payoff matrix for two firms, A and B, choosing to produce a basic computer or an advanced computer. The mixed-strategy Nash equilibrium is
A) Firm A produces an advanced computer with 80% chance, firm B produces an advanced computer with 20% chance. B) Both firms produce advanced computers with 50% chance. C) Firm A produces an advanced computer with 60% chance, firm B produces an advanced computer with 40% chance. D) Both firms produce advanced computer with 80% chance.
Karl can produce either 10 tons of oranges or 5 tons of apples in a year, while Adam can produce either 5 tons of oranges or 10 tons of apples. Refer to Exhibit 28-2. Which of the following would be mutually beneficial terms of trade between Karl and Adam?
A. 1 ton of apples per 2 1/2 tons of oranges B. 1 ton of apples per 1 1/2 tons of oranges C. 1 ton of apples per 1/4 ton of oranges D. 1 ton of apples per 1/5 ton of oranges
Which of the following will tend to result in the least variation in the expected real rate of return from the ownership of stocks?
What will be an ideal response?
Average labor productivity times the proportion of the population employed equals:
A. real GDP per worker. B. real GDP per person. C. real GDP. D. output per worker.