A loss in economic efficiency occurs when production of a good is above the equilibrium quantity
a. True
b. False
Indicate whether the statement is true or false
True
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If there is an inverse relationship between two variables, the graph of this relationship
A) will be a horizontal line. B) will be downward-sloping. C) might be horizontal. D) will be upward-sloping.
Competitive firms cannot individually affect market price because
A. There is an infinite demand for their goods. B. Their individual production is insignificant relative to the production of the industry. C. The government exercises control over the market power of competitive firms. D. Demand is perfectly inelastic for their goods.
The case where a firm sells each unit at the maximum amount each customer is willing to pay for it is called
A) first-degree price discrimination. B) second-degree price discrimination. C) third-degree price discrimination. D) nonlinear price discrimination.
Because heuristics appear to be hardwired into the brain, the consequences include the following, except:
A. It is sometimes difficult for people to correct detrimental behaviors or routines B. People may be vulnerable to others who understand their hardwired tendencies C. Heuristics make people consistently behave in a rational manner D. People may make behavioral changes if they're exposed to a situation where a heuristic kicks in and starts driving their decision