What is the self-correcting mechanism that firms have and government agencies do not have?
a. Competitors
b. Annual budgets
c. Technology restrictions
d. Unskilled employees
a. Competitors
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The figure above shows the market for pants. If the production of the pants results in an external cost from pollution that is the result of the dye used, then
A) 6 million pairs is the efficient quantity. B) fewer than 6 million pairs is the efficient quantity. C) more than 6 million pairs is the efficient quantity. D) None of the above answers is necessarily correct because more information is needed about the size of the external cost. E) None of the above answers is correct because it is impossible to tell whether the external cost results in underproduction or overproduction.
Refer to the figure above. The triangular region BEC shows the ________ due to the price ceiling
A) gain in consumer surplus B) loss in consumer surplus C) gain in producer surplus D) loss in producer surplus
What is meant by product differentiation?
What will be an ideal response?
If, at the firm's projected sales level, the marginal cost is $40, the average cost is $50 and the markup is 30 percent, then its selling price is
A) $40. B) $50. C) $52. D) $65.