Some economists argue that competitive price-searcher markets are inefficient because
a. the firms earn economic profits in the long run.
b. the firms' marginal costs and marginal revenues are not always equal.
c. firms do not produce the output rate that would minimize their average total costs.
d. barriers to entry are high.
C
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When the Fed receives an inflow of Federal Reserve notes, its
A) assets rise. B) liabilities decline. C) liabilities increase. D) assets decline.
When grocery stores issue special discount membership cards for shoppers effectively offering different prices based on quantities consumed, this is an example of
A) price discrimination. B) price differentiation. C) product differentiation. D) patent protection.
In the long run, a firm can choose
A) to operate at any point on only one short-run average total cost curve. B) to operate along any short-run average total cost curves. C) to operate along any short-run average variable cost curves. D) to operate along any point of its short-run marginal cost curves.
The sum of public spending on goods and services and transfer payments during a given period cannot exceed tax revenues plus borrowed funds. This is the statement for
A. the government budget constraint. B. ad valorem taxation. C. an excise tax. D. a sales tax.