Firms in perfect competition produce the allocatively efficient output in the short run and in the long run
Indicate whether the statement is true or false
TRUE
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What role does foreign direct investment play in international transfer of technology?
What will be an ideal response?
One possible benefit of a monopoly is:
a. a more efficient allocation of resources; only one firm is needed to supply quantity demanded. b. greater incentives for research due to long-run positive economic profits. c. the government is better able to ensure that it follows laws and guidelines because there is only one firm to monitor. d. goods and services are provided at a lower price than under perfect competition because of a monopoly's decreasing average cost curve.
Explain how changes in wealth, the price level, interest rates, and expectations alter the consumption curve.
What will be an ideal response?
Scarcity implies that
A) people should limit their wants, since shortages exist. B) firms should be more efficient when producing goods. C) people must make choices. D) nonrenewable resources should never be used.