If Perfect Competition Existed Everywhere, Along with Frictionless Exchange, Perfect

question 137

Multiple Choice

If perfect competition existed everywhere, along with frictionless exchange, perfect information, and constant returns to scale, ______.​

• A)consumers would carry out transactions directly with resource suppliers
• B)firms would not have the information necessary to calculate the marginal productivities of resources
• C)entrepreneurs would be needed to collect information
• D)consumers would produce output and then engage in barter
• E)the economy would be organized into one large firm

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Definitions:

Aggregate Planning

The method of creating, examining, and upkeeping an initial, rough timetable of a company's entire operations.

Decision Variables

Variables that decision-makers control to determine the best action to take in operational and planning models.

Plant Capacity

The maximum output a manufacturing facility can produce under normal operating conditions in a specific period.

Chase Strategy

A capacity management approach that involves adjusting workforce and production levels to directly match demand fluctuations.