Efficiency wages create structural unemployment
a. True
b. False
Indicate whether the statement is true or false
True
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Allocative inefficiency happens in a monopoly because at the profit-maximizing output level:
A. P > ATC B. P > MR C. P > MC D. P > AVC
In an monopolistic market there is likely to be:
A. Little consideration of the actions of rival firms B. Price taking behavior on the part of firms C. Homogeneous but not differentiated products D. Neither allocation nor productive efficiency
A limit on special-interest contributions to national political campaigns
a. would give challengers an edge over incumbents b. is usually supported by special-interest groups as a way of saving money c. would involve widespread costs and concentrated benefits d. would reduce the extent of rent seeking e. is an example of competing-interest legislation
A price floor will be binding only if it is set
a. equal to the equilibrium price. b. above the equilibrium price. c. below the equilibrium price. d. either above or below the equilibrium price.