A Very Massive Object a and a Less Massive Object

question 82

Multiple Choice

A very massive object A and a less massive object B move toward each other under the influence of gravity. Which force, if either, is greater?

• A)the force on A
• B)the force on B
• C)both forces are the same.

Predict the impact of changes in demand and supply on market prices and the quantity produced.

Understand the conditions under which firms in a competitive market earn zero economic profit in the long run.

Identify the impact of factor prices on the market supply curve in the long term.

Understand the concept of a constant cost industry and its characteristics.

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Definitions:

Market Failure

A situation where the free market fails to allocate resources efficiently, leading to a net social welfare loss.

Private Goods

Goods that are excludable and rival in consumption, meaning their use is limited to paying customers and one person's use of the good prevents another's use of it.

Prices

The sum of money needed to buy a product or service.

Efficient Allocation

The optimal distribution of resources in an economy, where resources are utilized in a manner that maximizes societal welfare without any wastage.