In a World of Perfect Information, If Consumers Could Costlessly

question 85

Multiple Choice

In a world of perfect information, if consumers could costlessly contract with private contractors to produce a good and there were no economies of scale,

• A)firms would be unnecessary
• B)markets would be unnecessary
• C)consumers would be unnecessary
• D)consumers would face greater production costs
• E)firms would be more efficient than the market

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Definitions:

Estimated Line of Cost Behavior

A projection or forecast of how costs will change with different levels of activity.