In a competitive economy with no government sector:
a. goods with spillover benefits will not be produced at all.
b. there will be too few public goods produced
c. goods with spillover costs will be underproduced.
d. too few resources be allocated to each industry.
b
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Suppose there are 100 consumers with identical individual demand curves. When the price of a movie ticket is $8, the quantity demanded for each person is 5 . When the price is $4, the quantity demanded for each person is 9 . Assuming the law of demand holds, which of the following choices is the most likely quantity demanded in the market when the price is $6?
a. 700 b. 1,200 c. 400 d. 1,000 e. 100
Average physical product measures the increase in total output that results from a one-unit increase in an input
a. True b. False Indicate whether the statement is true or false
Increasing concentration always means an industry has become effectively monopolized.
Answer the following statement true (T) or false (F)
Which of the following would make the equilibrium real interest rate increase and the equilibrium quantity of funds decrease?
a. The demand for loanable funds shifts right. b. The demand for loanable funds shifts left. c. The supply of loanable funds shifts right. d. The supply of loanable funds shifts left.