Prices allocate a market economy's scarce resources
a. True
b. False
Indicate whether the statement is true or false
True
You might also like to view...
A monopolistically competitive firm, like a perfectly competitive firm, is a price taker
a. True b. False Indicate whether the statement is true or false
Suppose Chip's Chips produces bags of potato chips that sell for $3 a bag. What was the total revenue for Chip's Chips?
A. Cannot answer this question without knowing the quantity of bags sold. B. Cannot answer this question without knowing the cost per bag. C. Cannot answer this question without knowing the cost per bag and the quantity of bags sold. D. Cannot answer this question without knowing what market share they hold.
List five goods that are likely sold in a monopolistically competitive market
If the government set a price floor at $8
A. there would be a temporary surplus, then prices would fall to equilibrium.
B. there would be a permanent surplus, at least until the price floor was lifted.
C. the price would rise back to the equilibrium price.
D. the price floor would not have any effect on this market.