Q)All of the following statements are true except A. consumers allocate their budgets to get the most value possible. B.when firms in perfect competition are away from the long−run equilibrium, the market is still efficient. C. firms get the most value out of their resources at every point along a consumer's demand curve. D. a competitive equilibrium achieves an efficient outcome.

Q)All of the following statements are true except A. consumers allocate their budgets to get the most value possible. B.when firms in perfect competition are away from the long−run equilibrium, the market is still efficient. C. firms get the most value out of their resources at every point along a consumer's demand curve. D. a competitive equilibrium achieves an efficient outcome.

Principles of Microeconomics

7th Edition

ISBN:9781305156050

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter22: Frontiers Of Microeconomics

Section: Chapter Questions

Problem 9PA

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Question

Q)All of the following statements are true except

consumers allocate their budgets to get the most value possible.

B.when firms in perfect competition are away from the

long−run

equilibrium, the market is still efficient.

firms get the most value out of their resources at every point along a consumer's demand curve.

a competitive equilibrium achieves an efficient outcome.

we derive a consumer's demand curve by finding how the best budget allocation changes as the price of a good changes.

Defintion Defintion Curve that represents the graphical relationship between the total supply of goods and services and the price level in the economy. When the price level increases, producers tend to supply more of a product in the market to earn a higher revenue or vice versa.

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