The text asserts that the allocation of resources among firms is efficient. What assumptions must hold for this to be true?
What will be an ideal response?
To be true, the following assumptions must hold. Factor markets are competitive and open, all firms pay the same prices for inputs, and all firms maximize profits.
Economics
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According to classical macroeconomic theory, nominal variables, but not real variables, are affected by changes in the
a) supply schedule. b) labor supply. c) money supply. d) aggregate supply.
Economics
Refer to the scenario above. What will be the future value of the deposit after 3 years?
A) $9,822.63 B) $9,964.21 C) $10,077.70 D) $10,220.98
Economics