The idea that every Pareto efficient allocation is the competitive equilibrium for some initial allocation of resources is known as:
A. the first welfare theorem.
B. the second welfare theorem.
C. the third welfare theorem.
D. the exchange efficiency condition.
B. the second welfare theorem.
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If an average cost pricing rule is imposed on the firm in the figure above, the consumer surplus will be
A) zero. B) $450. C) $400. D) $200.
If changes in inflation are higher than expected,
A) the long-run Phillips curve will be negatively sloped. B) the short-run Phillips curve will be positively sloped, but not vertical. C) the short-run Phillips curve will be vertical. D) the short-run Phillips curve will be negatively sloped.
In which case will the transition from short run to long run involve the shortest chronological time?
a. a service that provides temporary secretaries to companies b. an automobile factory c. a farm d. an electric utility
In deciding whether to operate in the short run, the firm must be concerned with the relationship between price of the output and
A) total cost. B) average variable cost. C) total fixed cost. D) the number of buyers.