Suppose That Firms a and B Each Produce High-Resolution Computer

question 92

Multiple Choice

Suppose that Firms A and B each produce high-resolution computer monitors,but Firm A can do so at a lower cost.Cassie and David each want to purchase a high-resolution computer monitor,but David is willing to pay more than Cassie.If Firm A produces a monitor that Cassie buys but David does not,then the market outcome illustrates which of the following principles?
(i)
Free markets allocate the supply of goods to the buyers who value them most highly,as measured by their willingness to pay.
(ii)
Free markets allocate the demand for goods to the sellers who can produce them at the least cost.

• A)(i)only
• B)(ii)only
• C)both (i)and (ii)
• D)neither (i)nor (ii)

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Definitions:

Personal Growth

The process of improving self-awareness, knowledge, skills, and developing one's potential or character.

Environmental Events

Occurrences in an individual's environment that can influence their behavior, development, or psychological state, encompassing both natural and human-made events.

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The collective qualities, traits, and behavioral patterns that are inherent and universally recognized in humans.

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Psychologists or researchers who focus on observable behaviors rather than internal processes such as cognition and emotion, emphasizing the learning process, particularly through reinforcement and punishment.