Perfect competition ________ a fair outcome ________
A) achieves; because both the fair rules and fair results conditions are met
B) achieves; because total surplus is maximized
C) does not achieve; because entrepreneurs only earn a normal profit
D) does not achieve; because firms must be price takers
E) may achieve; if average total costs are minimized
A
You might also like to view...
Economists who focus on the need for fiscal austerity tend to focus on
A. the short run. B. the long run. C. both the short run and the long run. D. neither the short run or the long run.
If the central bank does not purchase foreign assets when output increases but instead holds the money stock constant, can it still keep the exchange rate fixed at ? Please explain with the aid of a figure
What will be an ideal response?
The most important advantage of discount policy is that the Fed can use it to
A) precisely control the monetary base. B) perform its role as lender of last resort. C) control the money supply. D) punish banks that have deficient reserves.
An imperfectly competitive firm is one that:
A. faces a perfectly inelastic demand curve. B. has at least some influence over the market price. C. seeks to maximize revenue. D. charges any price it wants.