Markets fail to allocate resources efficiently when
a. demanders and suppliers cannot agree on a price.
b. goods are rival in consumption and excludable.
c. property rights are not well established.
d. too many buyers and sellers exist in the same market.
c
You might also like to view...
Refer to Table 3-3. The table above shows the demand schedules for Kona coffee of two individuals (Luke and Ravi) and the rest of the market. At a price of $4, the quantity demanded in the market would be
A) 40 lbs. B) 70 lbs. C) 110 lbs. D) 150 lbs.
When a producer has the ability to produce a good or service at a lower opportunity cost than others, economists say the producer:
A. has an absolute advantage at producing that good. B. has a comparative advantage at producing that good. C. has no reason to trade with others. D. is efficient in production.
Consuming goods until the ratio of marginal utilities of the goods is equal to the ratio of their prices is consistent with maximizing total utility
a. True b. False
A monopolist can earn an economic profit only when:
A. marginal cost equals marginal revenue, and the same is true for a perfectly competitive firm. B. marginal cost equals price, while a perfectly competitive firm earns a profit if average total cost is less than price. C. average total cost is less than price and the same is true for a perfectly competitive firm. D. average variable cost exceed marginal cost, while a perfectly competitive firm earns a profit if average total cost exceeds marginal cost.