Which of the following is not a market failure?
A. A lack of competition in some markets.
B. Prices determined in competitive markets, which consumers, as individuals, have no control over.
C. The presence of externalities in some markets.
D. A lack of public goods desired by a majority of citizens.
Answer: B
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Firms that survive in the long run are usually those that
A) become as large as possible. B) remain small. C) use more capital rather than more labor. D) earn the largest possible profit.
Henry Ford’s use of mass-production techniques to produce cars faster and cheaper illustrates how ______.
a. production innovations can create economies of scale b. problems set in when manufacturing increases quickly c. assembly lines removed the need for a large workforce d. an increasing output level raises the average total cost