At prices below a consumer's willingness to pay:
A. the buyer will not participate in the market because the opportunity cost is more than the benefit from consuming the good.
B. the buyer will not participate in the market because the opportunity cost is less than the benefit from consuming the good.
C. the buyer will participate in the market because the opportunity cost is more than the benefit from consuming the good.
D. the buyer will participate in the market because the opportunity cost is less than the benefit from consuming the good.
Answer: D
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A perfectly competitive firm is producing at the point where its marginal cost equals its marginal revenue. If the firm boosts its output, its total revenue will ________ and its profit will ________
A) rise; rise B) rise; fall C) fall; rise D) fall; fall
Income redistribution ________
A) creates an income distribution that is less equal than the market distribution B) is efficient because it makes the distribution of income more equal. C) eliminates the big tradeoff between rich and poor D) creates a deadweight loss
Managers in firms with market power can:
A) not influence price. B) develop strategies that involve both the demand and supply sides of the market. C) only focus on the demand side of the market. D) none of the above.
Fred recently lost his job as a teller at the bank. The bank explained that they were replacing Frank and others with ATM machines. Fred falls into a category of unemployment known as
A) frictional unemployment. B) structural unemployment. C) cyclical unemployment. D) seasonal unemployment.