Which of the following is a key criticism of the market economy as a system of allocation?
a. Goods and services are allocated unequally based on ability to pay.
b. Producers have strong incentives to innovate because successful innovators are rewarded with higher profit.
c. Consumers can transmit their preference for product quality and variety by way of their "dollar votes" cast in the marketplace. Since price is freely set based on supply and demand, there are few shortages or surpluses.
d. None of the above.
a
Economics
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In the above figure, if the natural monopoly is regulated with a marginal cost pricing rule, then the deadweight loss to society is
A) zero. B) ecf. C) gde. D) efcb.
Economics
Why does each of these gas stations have so little control over the price of the gasoline they sell?
What will be an ideal response?
Economics