Which of the Following Is Not a Property of a Competitive

question 27

Multiple Choice

Which of the following is not a property of a competitive equilibrium?

• A) markets clear.
• B) consumers and firms optimize given market prices.
• C) the government budget constraint is satisfied.
• D) increasing total factor productivity.

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Definitions:

Monopolistic Competition

A market structure characterized by many sellers offering differentiated products, with some degree of market power.

Vacancy Rate

The percentage of all available units in a housing development or commercial property that are unoccupied or not rented at a given time.

Marginal Cost

Represents the cost incurred by producing one additional unit of a product or service.

"Staying" Power

The ability of an individual or entity to endure an adverse condition or situation for a long period without succumbing.