Microeconomics A) No, because the simple economic models ignore the opportunity
ID: 1098938 • Letter: M
Question
Microeconomics
A) No, because the simple economic models ignore the opportunity cost of resources.
B) Yes, because the entrepreneurs who are best able to find the profit-maximizing prices and output levels will survive and expand, driving others out of competitive markets.
C) Yes, because they can hire economists who have sufficient knowledge of costs and demand conditions.
D) No, because even entrepreneurs who are able to find the profit-maximizing prices and level of output will be unable to compete with other entrepreneurs who charge higher prices.
Explanation / Answer
B) Yes, because the entrepreneurs who are best able to find the profit-maximizing prices and output levels will survive and expand, driving others out of competitive markets.