Under perfect competition, the market mechanism, without any government regulation, is capable of
a. allocating resources efficiently.
b. solving equity problems.
c. making the average cost of labor equal to the average cost of all commodities.
d. making more income available to the poor.
a
You might also like to view...
If the inflation premium is 3% and the real interest on a loan is 4%, then the nominal interest rate is
A. 0.75%. B. 1%. C. -1%. D. 7%.
The above table shows the total product of producing baseball hats. The marginal product of the 4th worker is equal to
A) 25 baseball hats. B) 21 baseball hats. C) 7 baseball hats. D) 6.25 baseball hats.
The demand for lobster is lower in the spring than in the summer. If the price of lobster is higher in spring than in summer then
a) consumers' tastes for lobster are greater in spring than in summer b) the supply of lobster is greater in summer than in spring. c) there are more substitutes for lobster in summer than there are in spring d) there is a shortage of lobster in spring and a surplus of lobster in summer
Wilbur's Widgets, a widget company, produces 100 widgets. Its average fixed cost is $6 and its total variable cost is $400. The total cost of producing 100 widgets is
A. $306. B. $400. C. $600. D. $1,000.