A market could function under competition in the situation of Figure 3.1 if demand is at the level of DD
Indicate whether the statement is true or false
F Only two firms can operate in such a market, and scale economies are so great that entry is not likely, so true competition cannot be expected to function well.
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A firm maximizes profit by operating at the level of output where
A) average revenue equals average cost. B) average revenue equals average variable cost. C) total costs are minimized. D) marginal revenue equals marginal cost. E) marginal revenue exceeds marginal cost by the greatest amount.
A social welfare function (SWF)
A) depicts the preferences of the president of the country. B) combines various consumers' utilities to provide a collective ranking of allocations. C) indicates the choices that are acceptable by most consumers. D) is the outcome of a majority voting decision rule.
The table above shows data reported by the Office for National Statistics for the United Kingdom in September 2000. In September 2000, the labor force participation rate is
A) 34.8 percent. B) 40.3 percent. C) 63.1 percent. D) 58.3 percent. E) 59.7 percent.
Sometimes banks tend to invest in risky stocks because the deposits of their customers are insured by the Federal Deposit Insurance Committee. This behavior is an example of ________
A) adverse selection B) moral hazard C) the paradox of thrift D) the free-rider problem