If everyone's utility function includes only conspicuous consumption goods:
A. the market will lead to higher social welfare than it otherwise would.
B. the market will lead to lower social welfare than it otherwise would.
C. we can say nothing about market and social welfare.
D. the market will lead to the highest social welfare.
Answer: C
Economics
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If restrictions on entry and exit of firms are introduced in free markets, ________
A) all existing firms earn equal profits in the long run B) existing firms incur equal losses in the long run C) the market allocates resources efficiently D) resources in the market are not allocated efficiently
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The forces that determine the cost of production are largely independent of the forces that shape demand
a. True b. False
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