The pig farm industry is perfectly competitive. Which of the following is true?
a. Since the industry is perfectly competitive, price and quantity are at the socially efficient levels.
b. The competitive price is higher and quantity lower than the socially efficient point.
c. The competitive price is higher and quantity higher than the socially efficient point.
d. The competitive price is lower and quantity higher than the socially efficient point.
d
You might also like to view...
Which region in the New World received the largest share of slaves?
a. Brazil b. Colonial America c. Cuba d. Canada
The government imposing a minimum wage is an example of an attempt to:
A. correct a market failure. B. redistribute surplus in a market. C. encourage the consumption of inferior goods. D. discourage the consumption of inferior goods.
A person who believes the economy is self-regulating also believes that
A) when there is a surplus in the labor market, the wage rate falls, and when there is a shortage in the labor market, the wage rate rises. B) it is better if the economy is in an inflationary gap than a recessionary gap. C) prices are flexible but wages are not. D) the economy is always in long-run equilibrium. E) the real balance effect does not operate in a recessionary gap.
The central idea behind comparative advantage is that a nation should
A. specialize in the product that it can produce with the lowest opportunity cost. B. compare its market economy with other nations. C. use money as a medium of exchange to facilitate specialization and trade. D. pursue investment in capital goods as a means of stimulating economic growth.