If a $50 billion decrease in investment spending causes income to decline by $50 billion in the first round of the multiplier process and by $25 in the second round, the multiplier in the economy is:

Which of the following is necessary for allocative efficiency to be achieved?

A) Marginal benefit must be maximized. B) Marginal cost must be minimized. C) Marginal benefit must equal marginal cost. D) The difference between marginal benefit and marginal cost must be maximized. E) Production must be at a point inside the production possibilities frontier.

Walmart built the base of its retailing market power in small cities and towns. In most of those towns, the size of the marketplace is so small that only one large retailer can successfully exist. This resulted in

A. secure strategy. B. first-mover advantage. C. adverse selection. D. extension form.