When sellers in a perfectly competitive market attempt to maximize their own profits, they:
A) eventually end up minimizing the value of total production.
B) earn positive economic profits even in the long run.
C) move scarce resources to their highest possible use.
D) eventually divert resources toward their lower valued uses.
C
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Financial intermediaries will be more likely to loan you the savings of other individuals than an individual because
A) they have specialists who research your credit worthiness. B) they have contingency funds to cover loan losses. C) they fund credit agencies to collect loan repayment information. D) All of the above.
Actual expenditure is to planned expenditure as ________ is to ________
A) desire; accomplishment B) aggregate demand; aggregate supply C) output; income D) observed; theoretical E) fluctuation; equilibrium
Compared with a perfectly competitive firm facing the same costs, long-run equilibrium for a monopolistically competitive firm will result in
A) a higher price and greater output. B) a lower price and less output. C) a higher price and less output. D) a lower price and greater output.
Refer to the information provided in Figure 3.7 below to answer the following question(s).
?Figure 3.7Refer to Figure 3.7. If pizza and burritos are substitutes, a decrease in the price of burritos will cause a movement from Point B on demand curve D2 to
A. Point A on demand curve D2. B. demand curve D1. C. Point C on demand curve D2. D. demand curve D3.