Mr. Peabody chooses to invest in companies that produce goods and services based on consumer preferences. Mr. Peabody is investing in companies that are attempting to be
A) guaranteed to make a profit. B) allocatively efficient.
C) productively efficient. D) all of the above
B
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Answer the following statement true (T) or false (F)
1) The wants of consumers are expressed in the product market with "dollar votes." 2) Costs can be defined as total payments made to workers, land owners, and capital suppliers less payments to the entrepreneur for organizing and combining the other resources used to produce a good. 3) Continued losses in an industry will cause some firms to reduce output or eventually leave the industry. 4) The guiding function of prices tends to keep resources flowing toward their most highly valued uses.
If a price ceiling of $8 were placed in the market in the graph shown:
A. a shortage of 23 would occur. B. a shortage of 7 would occur. C. a shortage of 8 would occur. D. a shortage of 15 would occur.