if firms produce goods that they expect to sell but fail to sell them because consumption is less than expected there will be
As the firms fail to sell the expected amount of goods because the consumption is less than the expected then there will be a contraction in the planned expenditure.
if firms produce goods that they expect to sell but fail to sell them because consumption is less than expected there wi...
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...
Firms choose how to produce the goods and services they sell. In many cases, firms face a trade-off between using more workers or using more machines. For example, A. many times in the past several decades, firms may have chosen between a production method in the United States that uses fewer machines and more workers and a production method in China that uses more machines and fewer workers. B. many times in the past several decades, firms may have chosen...
Question 28 2 pts Why do perfectly competitive firms sell their products only at the market price? Firms can sell their goods above the market price because firms are considered price takers. If a firm charges more than other firms, it will sell nothing; it has no incentive to sell at a lower price. Firms can sell their goods above the market price because firms are considered price makers. If a firm charges less than other firms, it will be...
Suppose that banks are less able to raise funds and so lend less. Consequently, because people and households are less able to borrow, they spend less at any given price level than they would otherwise. The crisis is persistent so lending should remain depressed for some time. If nominal wages are sticky, which of the following helps explains the change in output? a. real wages fall, so firms choose to produce less b. real wages fall, so firms produce more...
Some analysts consider oligopolies to be potentially less efficient than monopoly firms because at least monopoly firms tend to be regulated. Arguments in favor of a more benign view of oligopolies include Instructions: You may select more than one answer. Click the box with a check mark for correct answers and click to empty the box for the wrong answers. Oligopolies can be kept in line by foreign competition. Oligopolies are self-regulating. Oligopolistic industries may promote technological progress. Oligopolies may engage in limit pricing to...
Suppose Country A produces few consumption goods and many investment goods, whereas Country B produces few investment goods and many consumption goods. Other things being equal, what would you expect to happen? a. Per capita income will grow more rapidly in Country B. O b. Population will grow faster in Country B. O c. The production possibilities curve for Country A will shift out more rapidly than that of Country B. d. Assuming that both countries started with identical production...
O A. Because the p-value is less than a, we reject the null hypothesis and conclude that the average det load is equal to $17,000 O B. Because the p-vakus is greafer than a we fail to reject the nu ○ C. Because the p-value is greater than a we fail to reject the nul hypothesis and cannot co clude that he OD. Because the pvalue is lesse an Suppose that the Department of Education would like to test the...
Microeconomics Suppose that a monopoly industry produces less output than a similar competitive industry. Discuss why this may be considered socially undesirable. Is this because it is always socially beneficial to produce more of some product? If competitive firms earn zero economic profits, explain why anyone would invest money in them. (Hint: What is the role of the opportunity cost of capital in economic profit?)
QUESTION 7 One would expect the lattice energy for Mgo to be less than that for Naf because Mg2+ and 02 have greater charge than Na and F. (Hint: Consider Coulomb's Law.) True False QUESTION 8 Which of the following would not be considered an ordered solid? a gold bar leather a graphite battery electrode sugar (sucrose) table salt
Suppose firms in a monopolistically competitive industry currently charge a price less than their average total cost. What will be the profitability for firms in the short and long term? 1) In the short run, firms in this market will A) make a loss. B) break even. C) make a profit. 2) In the long run, firms in the market will A) break even or exit the market. B) make a loss. C) make a profit. 3) What will happen...