What is meant by a purely competitive firm? Can you provide examples of firms that are economically efficient as opposed to economically inefficient firms? Do firms take into consideration the availability of scarce resources in the production of intermediate and/or final goods? Please provide real-life examples in your response.

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Chika IlonahLv10

28 Sep 2019

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The theory of public choice suggests that

a)the goods provided by government, whether public or private goods, are not scarce.

b)government agencies tend to be inefficient because the people running them do not understand the concept of opportunity cost.

c)you can lower your tax bill if you are careful not to consume too many government resources, regardless of what your neighbors do.

d)government agencies tend to be inefficient because they are subject to institutional arrangements in which managers do not have an incentive to be efficient.

turquoiseprairie-dog268

The theory of public choice suggests that

a)the goods provided by government, whether public or private goods, are not scarce.

b)government agencies tend to be inefficient because the people running them do not understand the concept of opportunity cost.

c)you can lower your tax bill if you are careful not to consume too many government resources, regardless of what your neighbors do.

d)government agencies tend to be inefficient because they are subject to institutional arrangements in which managers do not have an incentive to be efficient.

oliveclam18

4 What is meant by technological advance, as broadly defined? How does technological advance enter into the definition of the very long run? Which of the following are examples of technological advances, which are not: an improved production process; entry of a firm into a profitable purely competitive industry; the imitation of a new production process by another firm; an increase in a firm's advertising expenditures?

5 Learning how to use software takes time. So once customers have learned to use a particular software package, it is easier to sell them software upgrades than to convince them to switch to new software. What implications does this have for expected return rates on R&D spending for software firms developing upgrades versus those developing imitative products?

6 Why might a firm making a large economic profit from its existing product employ a fast-second strategy in relation to new or improved products? What risks does it run in pursuing this strategy? What incentive does a firm have to engage in R&D when rivals can imitate its new products?

limelouse307

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