Which of the following statements is TRUE?
A) Perfectly competitive markets are efficient, but monopoly markets never are efficient.
B) Perfectly competitive markets always reach equilibrium but monopoly markets never reach equilibrium.
C) Perfect price discriminating monopolists can eliminate all deadweight losses and achieve efficiency.
D) All the above statements are true.
C
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What important changes have occurred in the composition of the labor force since 1960? Is the popular image of the American worker as a factory worker accurate? Describe the types of jobs Americans are working in today.
What will be an ideal response?
Suppose that the price of flour used to produce bagels increases. Hence the equilibrium price of a bagel ________ and the equilibrium quantity ________
A) rises; increases B) does not change; does not change C) falls; increases D) rises; decreases E) falls; decreases
Leaving open-access resources open to all people but restricting the intensity of the use of the resources assigns
A) permanent property rights to the government. B) temporary property rights to those people given permission to use the resource. C) property rights to no one since the intensity of the use of the resource has been restricted. D) property rights to everyone since the resource is available to be used by everyone.
Which term refers to provisions in a law or a contract whereby monetary payments are automatically adjusted whenever a specified price index changes?
a. Contango b. Swap c. Averaging d. Indexing