Market failure occurs when resources are misallocated.
Answer the following statement true (T) or false (F)
True
You might also like to view...
A monopolistically competitive firm maximizes profit in the short run by producing where
A) price is less than marginal revenue. B) price is greater than marginal cost. C) price is less than average revenue. D) price is less than marginal cost.
A profit-maximizing monopolist that produces in the short run will
a. produce the level of output where marginal revenue exceeds marginal cost by the largest amount. b. increase output as long as the marginal revenue exceeds the marginal cost of producing that unit. c. produce the level of output where average total cost is at a minimum. d. increase price as long as the average revenue exceeds the average total cost. e. produce the level of output where average revenue exceeds average total cost by the largest amount.
What happened after the failure of the Bank of the United States in late 1930?
a. The stock market experienced a major crash. b. The FDIC stepped into cover deposits. c. People converted currency into deposits. d. Many banks stopped lending excess reserves.
Suppose that a new drug has been approved to treat a life-threatening disease. The demand for that drug is shown on the graph below. Prior to approval of this drug, the only treatment for this condition was any one of several non-prescription, or over-the-counter, pain relievers. The demand for one brand of the several non-prescription pain relievers is also shown on the graph. 
The manufacturer of the new drug would ________ total revenue by increasing the price from $15 to $16.
A. experience no change in B. decrease C. experience an uncertain change in D. increase