Perfectly competitive markets will tend to under-allocate resources to nonexclusive public goods because:
a. these goods are produced under conditions of increasing returns to scale.
b. no single individual can appropriate the total benefits provided by the purchase of such goods.
c. these goods are best produced under conditions of monopoly.
d. no private producer can provide the capital necessary to produce such goods.
b
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Recurring fixed costs may lead to only one firm producing in a Cournot oligopoly model.
Answer the following statement true (T) or false (F)
The Asian financial crisis was brought about by:
A. debt crisis. B. exchange rate crisis. C. excessive loss of national resources. D. None of these statements is true.
Bread and butter are complements. A decrease in the price of bread results in a(n)
a. decrease in the supply of break b. increase in the demand for butter c. increase in the demand for bread d. increase in resource prices e. violation of the law of demand
How long is the long run?
A. However long it would take a firm to have at least one variable cost B. However long it would take a firm to vary all of its costs C. A defined, set period of time, usually a year D. None of these defines the long run.