Perfectly competitive markets are efficient because
A) they always reach equilibrium.
B) firms in the market are price takers.
C) the cost to society for producing the goods is exactly equal to the value that society places on the good.
D) the long run equilibrium assures that the prices of resources will not increase.
C
You might also like to view...
According to this Application, the failure of including cell phones in a timely manner when calculating the CPI caused the telecommunications component of the price index
A) to become negative. B) to be biased upward. C) to be biased downward. D) to actually register no perceptible bias.
Why does it make sense for economies to specialize according to comparative advantage and trade?
What will be an ideal response?
All else equal, the flatter the marginal cost curve, the ________ sensitive quantity produced is to changes in demand and, thus the ________ valuable an accurate forecast is to the firm.
A) more; more B) more; less C) less; more D) less; less
The text quotes W. Edwards Deming as saying that "pay is not a motivator." The history of incentive pay plans shows that:
A. there is a mixed record in success of incentive pay plans. B. they rarely work. C. incentives work in every instance. D. incentives must be non-monetary to work.