« previous next »

Author Question: Any competitive equilibrium is Pareto-efficient because, with a competitive equilibrium, A) the ... (Read 125 times)

misspop

  • Hero Member
  • *****
  • Posts: 540
on: Jul 1, 2018
Any competitive equilibrium is Pareto-efficient because, with a competitive equilibrium,
 
  A) the marginal rates of substitution are equal for all consumers.
  B) the price line is the contract curve.
  C) mutual gains from trade exist.
  D) the slope of the price line equals the ratio of the MRS for all consumers.

Question 2

If a competitive firm finds that it maximizes short-run profits by shutting down, which of the following must be true?
 
  A) p < AVC for all levels of output.
  B) p < AVC only for the level of output at which p = MC.
  C) p < AVC only if the firm has no fixed costs.
  D) The firm will earn zero profit.


cadimas

  • Sr. Member
  • ****
  • Posts: 362
Reply #1 on: Jul 1, 2018
Answer to Question 1

A

Answer to Question 2

A


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question

misspop

  • Hero Member
  • *****
  • Posts: 540
Reply #2 on: Jul 1, 2018
Thank you :)


cadimas

  • Sr. Member
  • ****
  • Posts: 362
Reply #3 on: Jul 1, 2018
Happy to help you


« previous next »
 

Did you know?

Prostaglandins were first isolated from human semen in Sweden in the 1930s. They were so named because the researcher thought that they came from the prostate gland. In fact, prostaglandins exist and are synthesized in almost every cell of the body.

Did you know?

Complications of influenza include: bacterial pneumonia, ear and sinus infections, dehydration, and worsening of chronic conditions such as asthma, congestive heart failure, or diabetes.

Did you know?

If you use artificial sweeteners, such as cyclamates, your eyes may be more sensitive to light. Other factors that will make your eyes more sensitive to light include use of antibiotics, oral contraceptives, hypertension medications, diuretics, and antidiabetic medications.

Did you know?

In Eastern Europe and Russia, interferon is administered intranasally in varied doses for the common cold and influenza. It is claimed that this treatment can lower the risk of infection by as much as 60–70%.

Did you know?

All adverse reactions are commonly charted in red ink in the patient's record and usually are noted on the front of the chart. Failure to follow correct documentation procedures may result in malpractice lawsuits.

Competitive drug enzyme immunoassay. Competitive drug enzyme immunoassay.
(A) A brisk half-moon stroke is an efficient technique to use with the body brush or exfoliation ... (A) A brisk half-moon stroke is an efficient technique to use with the body brush or exfoliation ...
Competitive inhibitor Competitive inhibitor
Project Management: Achieving Competitive Advantage Project Management: Achieving Competitive Advantage
Kinesthesis and Equilibrium Kinesthesis and Equilibrium
What would be the appropriate equilibrium temperature of a system obtained by adding 25.0 g of ... What would be the appropriate equilibrium temperature of a system obtained by adding 25.0 g of ...
Video: Electrical Conduction System of the Heart

For a complete list of videos, visit our video library