While producing less than the competitive output decreases social welfare, the same cannot be said about producing more than the competitive output
Indicate whether the statement is true or false
False. When more than the competitive output is produced, each unit sold cost more than it is valued at. This reduces social welfare compared to the competitive output.
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A large number of businesses are organized as sole proprietorships because it is easy for them to acquire large sums of financing
a. True b. False
The equilibrium price is the same as the market-clearing price
a. True b. False Indicate whether the statement is true or false
The statement that ABC Co.'s profits totaled $500 million last year represents the use of money as a:
A. medium of exchange. B. store of value. C. unit of account. D. means of coincidence.
When misallocation of resources for production of a good results in spillover effects on third parties, there is a
A. productive failure. B. consumer failure. C. market failure. D. government failure.