Figure 5-17
In Figure 5-17, the consumer would prefer
a.
D to C.
b.
B to D.
c.
C to B or A.
d.
D to A but not B.
c
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In the above figure, a price of $1.25 and a quantity of 5 million gallons of milk per day maximizes the
A) amount of consumer surplus. B) amount of producer surplus. C) sum of consumer surplus and producer surplus. D) All of the above answers are correct.
The above figure shows the costs at Barney's Bagel Bakery. At which of the following amounts of output is the AFC be the lowest?
A) at 2000 bagels B) at 3000 bagels C) at 3500 bagels D) None of the above because the AFC is constant regardless of how many bagels are produced each day.
A plant is located at the cost-minimizing location when the marginal benefit of moving closer to the inputs is ________ the marginal cost.
A) greater than B) exactly double C) equal to D) less than
The amount by which actual output falls short of potential output is called: a. a deadweight loss
b. real GDP. c. a recessionary gap. d. the full-employment output. e. an expansionary gap.