Keynes believed that
A) the internal structure of the economy is extremely competitive and that wage-price flexibility exists.
B) monopolistic elements in the economy prevent immediate and sharp price declines in response to falling demand.
C) even though there are monopolistic elements in the economy, wage-price flexibility exists.
D) in spite of the competitiveness of the economy, wage-price flexibility does not exist.
B
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The fundamental cause of the tragedy of the commons is:
a. international trade. b. lack of defined property rights. c. ignorance. d. tariffs.
In a perfectly competitive market in which all firms are maximizing their economic profits, the demand and supply curves intersect at a price of $8. From this we know that each
A) firm's average total cost of producing the good is $8. B) firm's average variable cost of producing the good is $8. C) firm's marginal cost of producing the good is $8. D) firm is earning positive economic profits at a price of $8 or more.