A situation in which an individual has no information about probabilities and the underlying distributions of the possible outcomes of an investment choice is called:
a. a prior distribution.
b. updating.
c. risk tolerance.
d. pure uncertainty.
D
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A perfectly competitive firm can
A) sell all of its output at the prevailing market price. B) set a higher price to customers who are willing to pay more. C) raise its price in order to increase its total revenue. D) sell additional output only by lowering its price. E) usually not sell all the output it produces, but still "over-produces" because there are some periods when it can sell the extra output at very profitable prices.
The method of financing the Social Security system until 1983 is best described as
a. trust fund. b. excise tax. c. indirect tax. d. "pay as you go."
What do we call a person who attempts to earn profits in the futures markets by predicting future changes in supply or demand?
a. An investor. b. A speculator. c. A risk-preferring individual. d. A contractor.
"Compared to a competitive market, a single-price monopoly decreases the consumer surplus and increases the economic profit." Is the previous statement correct or incorrect? Explain your answer
What will be an ideal response?