Suppose the perfectly competitive equilibrium occurs such that too many units of the good are produced. This is an example of
A. greedy business people behaving in an inappropriate manner.
B. firms have not yet exited the industry.
C. marginal cost pricing.
D. market failure.
Answer: D
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The table has the marginal products for workers at? Bart's Bats, a baseball bat factory. Using the above? table, if the price of a bat is? $8, then the value of the marginal product of labor of the fourth worker is
A. ?$1.375. B. $40. C. $0.625. D. 5 bats. E. None of the above answers is correct.
Full employment is defined by the Council of Economic Advisers as
A) 4 percent. B) every adult who wants to work has a job. C) the unemployment rate associated with zero inflation. D) the unemployment rate associated with the normal frictions in the labor market.
Which of the following states the relationship between a bond's price and its yield?
a. As the price falls, the yield falls. b. Price and yield are usually independent of each other. c. As the price rises, the yield rises. d. As the price rises, the yield falls. e. As the yield rises, so does the price.
If population growth is greater than the growth of real output
A. the production possibilities curve is shifting to the left. B. real per capita Gross Domestic Product (GDP) growth will be less than the growth of real Gross Domestic Product (GDP). C. real per capita Gross Domestic Product (GDP) and real Gross Domestic Product (GDP) will be growing at the same rate. D. real per capita Gross Domestic Product (GDP) growth will be greater than the growth of real Gross Domestic Product (GDP).