Which of the following cannot be determined on the basis of the above regression results?
A) the degree of price elasticity of good B
B) whether or not good A is "normal"
C) the degree of competition between A and B
D) All of the above can be determined.
A
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If a good has many close substitutes, then its demand is most likely
A) elastic. B) inelastic. C) unit elastic. D) perfectly inelastic. E) elastic or inelastic depending on whether the price of the good is increasing or decreasing.
As a method of resource allocation, market price
A) means those who are willing and able to pay get a particular good or service. B) works well when self-interest must be suppressed. C) works best inside firms and government departments. D) is efficient when there is no effective way to distinguish among potential users of a scarce resource.
What is meant by productive efficiency? How does a perfectly competitive firm achieve productive efficiency?
What will be an ideal response?
A price-taking firm and a monopolist are alike in that ______.
a. price equals marginal revenue for both b. both maximize profits by choosing an output where marginal revenue equals marginal cost, provided that price exceeds average variable cost c. price exceeds marginal cost at the profit-maximizing level of output for both d. in the long run, both earn zero economic profits