Even though firms in competitive price-searcher markets do not produce at minimum ATC, competitive price-searcher markets may still be consistent with economic efficiency because
a. strict government regulations force the firms in these markets to keep their costs low.
b. they provide consumers with a greater diversity of products.
c. they encourage more advertising in both price-searcher and price-taker markets.
d. special legal protections for price searchers make it possible for them to more efficiently use resources.
B
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What would be a way for the Federal Reserve to slow down the economy when it is growing too quickly or is inflationary?
A) print more money B) encourage the stock market C) sell more government bonds D) buy back government bonds on the open market
The total cost (TC) of producing computer software diskettes (Q) is given as: TC = 200 + 5Q. What is the marginal cost?
A) 200 B) 5Q C) 5 D) 5 + (200/Q) E) none of the above