The Conclusion That the Level of Output Is Efficient at the Market

question 85

Multiple Choice

The conclusion that the level of output is efficient at the market equilibrium rests on all of the following assumptions EXCEPT that

• A) buyers and sellers are well-informed.
• B) there are no external costs or benefits.
• C) the government regulates price and output.
• D) the market is perfectly competitive.

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Definitions:

PEST Analysis

A strategic business tool used to identify and analyze the Political, Economic, Social, and Technological factors that could impact an organization.

Offshoring Backlash

Negative public or political reaction to the practice of moving business processes or services to another country to reduce costs.

Franchising

Permission to use another company’s trademarks, patents, copyrights, and expertise according to a strict template setting out the way it does business.

Importing

Purchasing goods or services from another country to be sold in a company’s home market.