When the invisible hand of self-interest results in an efficient outcome, market failure is the result.
Answer the following statement(s) true (T) or false (F)
Ans: False
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Patents stimulate technological advance by
A) allowing inventors to capture the economic rewards of their inventions. B) making capital more productive. C) providing information about the status of technical knowledge in the economy. D) enabling the government to determine which potential technological advances firms should pursue.
If income increases by $10,000 . government purchases are fixed at $1,000 . investment spending is fixed at $2,000 . net exports are fixed at $500, and the marginal propensity to consume is 0.70, by how much does aggregate expenditure increase?
a. $700 b. $2,000 c. $7,000 d. $1,000 e. $1,400
The term excess capacity refers to the fact that a firm operates on the upward-sloping portion of its average-total-cost curve
a. True b. False Indicate whether the statement is true or false
Which of the following formulas would correctly calculate a monopolist's profit?
a. profit = price – marginal cost b. profit = price – average total cost c. profit = (price – marginal cost) × quantity d. profit = (price – average total cost) × quantity