Mr. Peabody chooses to invest in companies that produce goods and services based on consumer preferences. Mr. Peabody is investing in companies that are attempting to be
A) allocatively efficient.
B) productively efficient.
C) guaranteed to make a profit.
D) all of the above.
Answer: A
Economics
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What is the main difference between the demand curves for the perfect competitor and the monopolist?
What will be an ideal response?
Economics
Assume that a perfectly competitive market is in long-run equilibrium. Suppose as a result of a health hazard associated with the industry's product, demand decreases drastically. What is the immediate result of this event?
A) The market price falls and the typical firm suffers an economic loss. B) The market supply increases to offset the fall in demand. C) The typical firm's average total cost curve shifts downward. D) The typical firm's marginal cost curve shifts to the left.
Economics