Author Question: In the figure above, suppose that Mac and Izzie trade and reach point c. Then A) Mac produces ... (Read 219 times)

Beheh · **on:** Jun 29, 2018

In the figure above, suppose that Mac and Izzie trade and reach point c. Then

A) Mac produces outside his production possibilities frontier.
B) Izzie produces outside her production possibilities frontier.
C) Mac and Izzie both produce outside their production possibilities frontiers.
D) neither Mac nor Izzie produce outside their production possibilities frontiers.

Question 2

A contestable market is one in which there are

A) one or a few firms, and entry into the market is costly.
B) one or a few firms, and entry into the market is not costly.
C) many firms, and entry into the market is costly.
D) many firms, and entry into the market is not costly.