Economists consider the model of perfect competition useful because:
a. it is a standard for analyzing producer and consumer benefits.
b. its assumptions exactly fit into actual conditions in some markets.
c. its assumptions can be easily replaced with realistic ones.
d. it is a standard for analyzing consumer choices.
A
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In many corporations, there is "separation of ownership from control." What does this mean?
A) The board of directors controls corporate operations, although the managers of the corporation own the corporation. B) Top corporate managers only make decisions that have been approved unanimously by shareholders. C) The shareholders control the corporation, although the board of directors owns the corporation. D) The managers of the corporation run the corporation, although the shareholders own the corporation.
________ is a situation in which a good or service is produced at the lowest possible cost
A) Equity B) Allocative efficiency C) Productive efficiency D) Optimal marginalism