What three assumptions must hold for the allocation of resources among firms to be efficient?
What will be an ideal response?
For the allocation of resources among firms to be efficient, factor markets must be competitive and open, all firms must pay the same price for inputs, and all firms must maximize profits.
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Price discrimination:
A. is more successful if resale of the product is possible from one consumer to another. B. can be a successful strategy for any firm in a competitive market C. tends to decrease the profits of the firm. D. can benefit consumers with a lower willingness to pay when compared to other consumers in the market
Table 14.3In Table 14.3, Market 1 would be in equilibrium if buyers believed lemons account for:
A. about 83.33% of the market. B. about 71.43% of the market. C. about 66.67%% of the market. D. about 42.86% of the market.