Two Qâ€™s but please respond with one single-page file
- In competitive, well-functioning markets, price equals marginal cost. Is this efficient? Explain why or why not. What incentives, if any, do firms have to produce at that level of output? Explain.
â€œCredit reform accounting is absurd. It reports budget outlays for a loan guarantee when a private bank makes the loan. And, when the government lends a borrower $100, it reports outlays of a fraction of that amount.â€ Agree or disagree? Explain.