Is a truly free-market economy destined to descend into monopoly, or will the market always correct itself with the "invisible hand?" A market with a single buyer is called: A. a monopsony. B. a monopoly. C. efficient. D. competitive. What is a free market? Compare the efficiency of...
Explain, For perfectly competitive firms, profits are maximized at the rate of output where price equals marginal cost. Remember profit is considered a cost. Explain with an example. A firm that earns zero economic profit always operate in a manner that is allo...
Economics 101 Section 8 Third Midterm Exam Fall 1999 Exam 3A Mark the one best answer to each of the following 30 multiple choice questions on the answer sheet.Be sure to mark the answer by the corresponding question number on the answer sheet. Do not make any stray marks on your answer...
As long as workers have complete information about the risks and hazards of a job and are free to choose between different employers, then compensating wage differentials are allocatively efficient. This is important in terms of government worker safety regulations--primarily undertaken by the ...
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Explain how the profit-maximizing rule of setting P=MC leads a perfectly competitive market to be allocatively efficient. Does a firm that sets its price greater than marginal cost apply to monopolistic competition, perfect competition, or both? Explain. ...
Why is the marginal revenue curve for a perfectly competitive firm is the same as its demand curve? Why is the marginal revenue curve for a perfectly competitive firm the same as its demand curve? Is a monopolist allocatively efficient? Why or why not? Why does a mon...