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

question 73

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 B produces a monitor that David buys,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:

Finances

The management of large amounts of money, especially by governments or large companies, but also pertaining to individual or personal money management.

Widowed

The state of having lost one's spouse through death.

Self-Care

The practice of taking action to preserve or improve one's own health, wellbeing, and happiness, particularly during periods of stress.

Web Of Kinship

A concept in anthropology describing the complex system of relationships and familial ties within a community or society.