Competitive markets produce equilibrium prices and quantities that maximize the sum of consumer and producer surpluses....
Competitive markets produce equilibrium prices and quantities that maximize the sum of consumer and producer surpluses.
Group of answer choices
FALSE
TRUE
Homework Answers
True,
for the competitive market equilibrium the market is allocative and productive efficient , that maximises the consumer and producer surplus both.
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Competitive markets produce equilibrium prices and quantities
that maximize the sum of consumer and producer surpluses....
Problem 4: Competitive markets, equilibriua, and surplus. The market demand is Q-15-P, and the market supply...
Problem 4: Competitive markets, equilibriua, and surplus. The market demand is Q-15-P, and the market supply is Q-P/2. (a) Assume that the markct is perfectly compctitive. What are the cquilibrium price and (b) Assume that the market is perfectly competitive. What is the equilibrium consumer, (c) In order to support producers by i quantity? producer, and total surplus? tion quota of Q-4 units. What will the market clearing price be? At that price, g prices, the government imposes a produc-...
Comparing monopoly and competitive market structures, "Deadweight Loss" refers to: Group of answer choices Underground markets...
Comparing monopoly and competitive market structures, "Deadweight Loss" refers to: Group of answer choices Underground markets developing to supply the monopoly good. Shortages caused by high monopoly pricing. The production gap resulting from under-allocation of resources. Surpluses caused by monopoly underproduction.
1.) as markets become increasingly more competitive, which of the following are less likely to remain...
1.) as markets become increasingly more competitive, which of the following are less likely to remain close to achieving? a.) significant producer surplus b.) equity c.) efficiency 2.)when the government intervenes to address market failure in the form of external benefits (positive externalities) it generally imposes taxes in order to internalize those benefits and thus reduces the quantity of those goods produced. a.) true b.) false d.) maximization of consumer surplus 3.) When external costs are present in the production...
48. Which statement explains why free markets fail to produce public goods? Firms do not want...
48. Which statement explains why free markets fail to produce public goods? Firms do not want to produce the good because they fear competition will drive the price down below costs. Consumers do not want to buy the good because the price is higher than the value of benefits they would receive. ° Consumers do not want to buy the product because each hopes that someone else will buy it and then all consumers will be able to have the...
A monopolistically competitive firm that wishes to maximize profits will choose to produce that level of output...
A monopolistically competitive firm that wishes to maximize profits will choose to produce that level of output where: Price of the good is equal to the marginal revenue of producing the last unit of the good Price of the good is equal to the marginal cost of producing the last unit of the good. Marginal revenue is equal to marginal cost. ATC is at the lowest point possible. An industry has eight firms with the following market shares: 5%, 20%,...
13 (This question refers to the MRU video 'Exploring Equilibrium.) At quantities lower than the equilibrium...
13 (This question refers to the MRU video 'Exploring Equilibrium.) At quantities lower than the equilibrium quantity, which of the following is true? t of 1 Select one: a. There are wasteful trades because buyers are willing to pay more than sellers require for another unit b. There are unexploited gains from trade because buyers are willing to pay more than sellers require for another unit c. There are unexploited gains from trade because sellers reqiure more than buyers are...
Statement 1: In oligopoly markets, the firms do NOT produce at the lowest possible cost (i.e.,...
Statement 1: In oligopoly markets, the firms do NOT produce at the lowest possible cost (i.e., lowest point on the average total cost (ATC) curve). Statement 2: Social surplus is NOT maximized in oligopoly markets. Statement (1) is true; statement (2) is false. Both statements (1) and (2) are tru. Both statements (1) and (2) are false. Statement (1) is false; statement (2) is true. Which of the following is the set of laws (legislation) that prohibits the formation of...
Question 10 (1 point) In a long-run competitive market equilibrium, existing firms produce at the efficient...
Question 10 (1 point) In a long-run competitive market equilibrium, existing firms produce at the efficient scale of production and make zero profit. True False Question 11 (1 point) Suppose that all existing firms in a long-run competitive market equilibrium are identical and have the following cost function C(Q) = A +Q2 with fixed cost A=$125.0 and MCIQ)=2Q. What is the market equilibrium price? No units. If necessary, round to 2 decimal places. Your Answer: Your Answer
Classify each market characteristic as being a trait of competitive markets, monopolistically competitive markets, or both...
Classify each market characteristic as being a trait of competitive markets, monopolistically competitive markets, or both market structures. Competitive Markets Monopolistically Competitive Markets Both Market Structures Answer Bank Differentiated goods Few, if any, barriers to entry No one buyer or seller can control prices Many buyers and sellers Identical/homogenous goods Match each example to the market structure it is most likely to belong to. Perfect (pure) competition Monopolistic competition Oligopoly Monopoly Answer Bank Carl's Taco Truck, one of many food...
In the perfectly competitive model, a firm's average total cost curve is assumed to be downward...
In the perfectly competitive model, a firm's average total cost curve is assumed to be downward sloping for all levels of output they may produce. Group of answer choices True False
Problem 4: Competitive markets, equilibriua, and surplus. The market demand is Q-15-P, and the market supply is Q-P/2. (a) Assume that the markct is perfectly compctitive. What are the cquilibrium price and (b) Assume that the market is perfectly competitive. What is the equilibrium consumer, (c) In order to support producers by i quantity? producer, and total surplus? tion quota of Q-4 units. What will the market clearing price be? At that price, g prices, the government imposes a produc-...
48. Which statement explains why free markets fail to produce public goods? Firms do not want to produce the good because they fear competition will drive the price down below costs. Consumers do not want to buy the good because the price is higher than the value of benefits they would receive. ° Consumers do not want to buy the product because each hopes that someone else will buy it and then all consumers will be able to have the...
A monopolistically competitive firm that wishes to maximize profits will choose to produce that level of output where: Price of the good is equal to the marginal revenue of producing the last unit of the good Price of the good is equal to the marginal cost of producing the last unit of the good. Marginal revenue is equal to marginal cost. ATC is at the lowest point possible. An industry has eight firms with the following market shares: 5%, 20%,...
13 (This question refers to the MRU video 'Exploring Equilibrium.) At quantities lower than the equilibrium quantity, which of the following is true? t of 1 Select one: a. There are wasteful trades because buyers are willing to pay more than sellers require for another unit b. There are unexploited gains from trade because buyers are willing to pay more than sellers require for another unit c. There are unexploited gains from trade because sellers reqiure more than buyers are...
Statement 1: In oligopoly markets, the firms do NOT produce at the lowest possible cost (i.e., lowest point on the average total cost (ATC) curve). Statement 2: Social surplus is NOT maximized in oligopoly markets. Statement (1) is true; statement (2) is false. Both statements (1) and (2) are tru. Both statements (1) and (2) are false. Statement (1) is false; statement (2) is true. Which of the following is the set of laws (legislation) that prohibits the formation of...
Question 10 (1 point) In a long-run competitive market equilibrium, existing firms produce at the efficient scale of production and make zero profit. True False Question 11 (1 point) Suppose that all existing firms in a long-run competitive market equilibrium are identical and have the following cost function C(Q) = A +Q2 with fixed cost A=$125.0 and MCIQ)=2Q. What is the market equilibrium price? No units. If necessary, round to 2 decimal places. Your Answer: Your Answer
Classify each market characteristic as being a trait of competitive markets, monopolistically competitive markets, or both market structures. Competitive Markets Monopolistically Competitive Markets Both Market Structures Answer Bank Differentiated goods Few, if any, barriers to entry No one buyer or seller can control prices Many buyers and sellers Identical/homogenous goods Match each example to the market structure it is most likely to belong to. Perfect (pure) competition Monopolistic competition Oligopoly Monopoly Answer Bank Carl's Taco Truck, one of many food...
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