« previous next »

Author Question: Why does perfect competition guarantee a Pareto optimal distribution of goods between two people? ... (Read 20 times)

pragya sharda

  • Hero Member
  • *****
  • Posts: 566
on: Jul 1, 2018
Why does perfect competition guarantee a Pareto optimal distribution of goods between two people? Under perfect competition,
 
  A) everyone has the same preferences.
  B) everyone faces the same prices.
  C) everyone consumes the same quantity of both goods.
  D) goods are homogeneous.

Question 2

Let P be the output price for a particular good. Why is the value PMPL greater than MRPL for a monopolist?
 
  A) The monopolist is not as technically efficient as firms operating under perfect competition.
  B) The monopolist hires less labor, so MPL is higher under a monopoly than under perfect competition.
  C) The monopolist sets a price that is higher than MR.
  D) A and C are correct.
  E) B and C are correct.


elizabethrperez

  • Sr. Member
  • ****
  • Posts: 344
Reply #1 on: Jul 1, 2018
Answer to Question 1

B

Answer to Question 2

E


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

This year, an estimated 1.4 million Americans will have a new or recurrent heart attack.

Did you know?

ACTH levels are normally highest in the early morning (between 6 and 8 A.M.) and lowest in the evening (between 6 and 11 P.M.). Therefore, a doctor who suspects abnormal levels looks for low ACTH in the morning and high ACTH in the evening.

Did you know?

The FDA recognizes 118 routes of administration.

Did you know?

Approximately 15–25% of recognized pregnancies end in miscarriage. However, many miscarriages often occur before a woman even knows she is pregnant.

Did you know?

About 3% of all pregnant women will give birth to twins, which is an increase in rate of nearly 60% since the early 1980s.

Retinopathy. Illustration of a normal retina (left) and a diseased retina (right). The diseased reti Retinopathy. Illustration of a normal retina (left) and a diseased retina (right). The diseased reti
Early in the twentieth century, when malnutrition was common, companies such as this one advertised Early in the twentieth century, when malnutrition was common, companies such as this one advertised
In many work settings, middle-aged people demonstrate generativity by serving as mentors for their ... In many work settings, middle-aged people demonstrate generativity by serving as mentors for their ...
Distribution and Forms of Precipitation: Rain Distribution and Forms of Precipitation: Rain
Marketing: Real People, Real Choices Marketing: Real People, Real Choices
The Frequency Distribution Curve of a Drug The Frequency Distribution Curve of a Drug
Video: ETC Protein Complexes & Chemiosmosis (Total ATP Production and ATP Synthase)

For a complete list of videos, visit our video library