Absent market imperfections, when firms ________ profits and households ________ utility Pareto optimality has been obtained.
A. maximize; maximize
B. minimize; minimize
C. maximize; minimize
D. minimize; maximize
Answer: A
You might also like to view...
The Arrow impossibility theorem states that
A) it is impossible for a majority voting system not to consistently represent the preferences of voters. B) it is impossible to separate corporate desires from public bureaucracy. C) no system of voting can be devised that will ensure a 100 percent voter turnout. D) no system of voting can be devised that will always consistently represent the underlying preferences of voters.
If the firm learns that the complicated technology can be made more stable with a few tweaks increasing the cost by 5.5million and increasing the probability of a launch to 50%. Is it worth for the firm to invest the $500,000 in tweaks?
a. No, because it decreases the total expected value b. Yes, because it increases expected value c. No, because it increases risk d. Yes, because tweaking is good
When interest rate increases, opportunity cost of holding money?
Refer to Figure 2-4. A movement from ________ is the result of negative technological change in plastic production
A) V to X B) Z to Y C) X to W D) W to Z