Which of the following statements is true?
A) Command economies do a better job at maximizing social welfare in comparison to market economies.
B) The incentive problem and the coordination problem lead to lower efficiency in market economies.
C) Central planners in command economies have to make decisions that prices would have automatically made in market economies.
D) Bringing economic agents together to trade is easier in command economies in comparison to market economies.
C
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Which of the following is the best example of a transactions cost?
A) the value of the time spent negotiating a contract B) the price of a new set of tires C) the cost associated with producing a golf club D) the price of labor and materials used to produce a house E) the price of food
Describe the relationship between marginal cost and average total cost
What will be an ideal response?