In a competitive market economy firms will select the least-cost production technique because:
A. such choices will result in full employment of available resources.
B. to do so will maximize the firms' profits.
C. this will prevent new firms from entering the industry.
D. "dollar voting" by consumers mandates such a choice.
Ans: B. to do so will maximize the firms' profits.
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According to Utilitarian principles first discussed in the nineteenth century, fairness implies
A) equality of income. B) equality of opportunity. C) winner takes all. D) maximizing consumption.
A dominant firm's residual demand curve is
A) the horizontal difference between the market demand curve and the supply curve of the fringe firms. B) the vertical difference between the market demand curve and the supply curve of the fringe firms. C) the demand curve left for the fringe firms after the dominant firm has determined an output level. D) None of the above.