A perfectly competitive firm is allocatively efficient because price is identical to marginal cost at every quantity
a. True
b. False
B
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In the short run in the Keynesian model, a sharp decline in oil prices would leave the economy with a ________ level of output and a ________ real interest rate
A) higher; lower B) lower; higher C) lower; lower D) higher; higher
During the period from 1945 to 1975, the debt to GDP ratio
a. remained steady. b. rose slightly. c. increased rapidly. d. fell steadily.
Answer the following questions:
a. Describe the three types of unemployment. b. Explain why economists believe some types of unemployment are efficient and some are not. Which ones are which?
Exhibit 1A-2 Straight line
In Exhibit 1A-2, explain the slope of straight line CD.
A. As the X value increases by 20, the Y value increases by 5, so the slope is 4. B. As the Y value increases by 5, the X value increases by 20, so the slope is 1/4. C. As the X value increases by 10, the Y value increases by 5, so the slope is 2. D. As the Y value increases by 5, the X value increases by 10, so the slope is 1/2.