What two conditions must hold for a competitive market to produce efficient outcomes?
A. Demand curves must reflect all costs of production, and supply curves must reflect
consumers' full willingness to pay.
B. Supply curves must reflect all costs of production, and demand curves must reflect
consumers' full willingness to pay.
C. Firms must minimize production costs, and consumers must minimize total expenditures.
D. Firms must maximize profits, and consumers must all pay prices equal to their maximum
willingness to pay.
Answer: B
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What will be an ideal response?
This group, consisting of individuals who would like to work but have not looked for work during the past four weeks, is included among
a. discouraged workers. b. the structurally unemployed. c. minimally attractive workers. d. marginally attached workers.