Competitive pricing is efficient because
A. the price that consumers pay reflects the opportunity cost to society of producing the good.
B. firms make positive economic profits in long-run equilibrium.
C. firms produce above the minimum efficient scale.
D. average revenue equals average cost.
Answer: A
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Evidence of a negative correlation between income per capita and population growth rates ________
A) implies that birth control is most effective in low-income countries B) has not been found in the available data C) is consistent with the Solow model D) suggests that population growth stimulates technological progress
Positive statements are
a. prescriptive. b. claims about how the world should be. c. claims about how the world is. d. made by economists speaking as policy advisers.
If interest rates go down, which of the following would most likely occur:
A. Banks will pay more to borrow money. B. The stock market will go up. C. Consumers will spend less. D. U.S. exports will decrease.
Suppose 30 employees per day can produce 50 units of output. Assuming the law of diminishing marginal returns is present, to produce 100 units of output would require:
A. a total of 60 or fewer employees per day. B. fewer than 30 additional employees per day. C. more than 30 additional employees per day. D. an additional 30 employees per day.