Mrs. Lovejoy decides to invest in companies which she believes are producing its goods based on the preferences of consumers. Mrs. Lovejoy is investing in companies that are
A) always going to be profitable. B) allocatively efficient.
C) productively efficient. D) both productively and allocatively efficient.
B
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A price-discriminating monopoly charges
A) the same price to every buyer for the same product. B) a different price to different types of buyers for the same product, even though there are no differences in costs. C) a different price to different buyers, because the costs are different. D) different prices to buyers for different products. E) each customer a price that equals the marginal cost of serving that customer.
Nominal GDP, PY, is $7.5 trillion. The quantity of money is $3 trillion. The velocity of circulation is
A) 22.5. B) 10.5. C) 2.5. D) 3.
Marginal physical product can tell a producer
A. at what point to stop adding inputs to the production process. B. how much profit will be made at each level of production. C. how much the last input added to the total amount of revenue. D. how much the last input added to the total amount of production.
Relative scarcities are indicated by
A) supply and demand being out of equilibrium. B) surpluses. C) excess demand and excess supply. D) relative prices.