When property rights are poorly defined,
a. positive or negative externalities may result
b. the market cannot generate an equilibrium price
c. the market price becomes highly unstable
d. the market must be relied upon to generate efficient allocation of resources
e. no externalities can exist
A
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Economists object to monopolies on the grounds of efficiency. Why is this? Explain.
What will be an ideal response?
When interest rate rise consumers will
A) compare loan payments with the desirability of goods in the future and increase consumption. B) compare loan payments with the desirability of goods today and increase consumption. C) wait to borrow funds when interest rates fall. D) none of above.
In long-run equilibrium, all firms in a pure competition market situation operating under a condition of certainty will have identical costs even though they may use different production and operation techniques
a. true b. false
In a competitive price-taker market, the actions of any single buyer or seller will
a. have a negligible impact on the market price. b. have little effect on overall production but will ultimately change final product price. c. cause a noticeable change in overall production and a change in final product price. d. adversely affect the profitability of more than one firm in the market.