Email: bbcnoun@gmail.com Whatsapp: 08131667008 ECO431 Question: What are firms in a competitive market called? Answer: Price takers Question: Which markets are close to being perfectly competitive? Answer: Agricultural Question: What is market failure? Answer: The failure of the price mechanism, at any point in time, to achieve optimal resource allocation Question: When does the price mechanism breaks down? Answer: Whenever and wherever there are inefficient transportation and communication systems. Question: What does macroeconomics deals with? Answer: Aggregate economic quantities Question: What does microeconomics deals with? Answer: The behavior of individual economic units Question: When does equilibrium occurs in a competitive market? Answer: MR=MC=P Question: Positive questions deal with explanation and prediction, while normative questions deal with Answer: “what ought to beâ€D Question: A perfectly competitive market has many buyers and sellers, so that no single buyers or seller has a significant impact on Answer: price Question: When could Pareto’s optimum occur? Answer: MR=MQ=P Email: bbcnoun@gmail.com Whatsapp: 08131667008