Imperfect competition
A. means there is no competition in the market.
B. should always be regulated by the government
C. is a major cause of externalities in the market.
D. results in less efficient market outcomes.
Answer: D
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Which of the following is both a store of value and a common medium of exchange?
a. corporate bonds b. mutual funds c. checking account balances d. All of the above are correct.
If a firm has excess capacity, then
A) the firm expends too much of its resources on advertising its product without seeing an appreciable increase in sales. B) the firm is not producing its minimum efficient scale of output. C) the firm's long-run average cost of producing a given quantity exceeds its short-run cost of producing that same quantity. D) the firm's quantity supplied exceeds its quantity demanded.