General equilibrium analysis
A. concerns competitive equilibrium only in the factor markets.
B. concerns competitive equilibrium only in the product markets.
C. concerns competitive equilibrium in a single market, considered in isolation.
D. is the study of competitive equilibrium in many markets at the same time.
D. is the study of competitive equilibrium in many markets at the same time.
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Which of the following is a barrier to entry?
a. Zoning laws preventing the establishment of new businesses in a certain area. b. The cost of buying a building in which to establish a new business. c. A sales-tax law. d. Inspection requirements for agricultural products.
An externality is defined as
a. an opportunity cost that is not considered, which causes inefficiency. b. a social cost that affects parties external to a transaction. c. a transaction which imposes a loss on one of the parties involved. d. a "cost of doing business" that cannot be allocated to any particular good. e. the increase in cost associated with increased production.