For an impure consumption good the maximum output is determined where_____
a. price equals marginal cost
b. marginal cost equals the vertical summation of all individual demand curves
c. price equals long run average total cost
d. marginal cost equals the horizontal summation of all individual demand curves
b
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Used car buyers believe a car is good quality when the seller signals the car's quality by offering a warranty because
A) car sellers would never lie. B) car buyers are gullible. C) the signal cannot be false. D) a false signal can be costly to the seller.
In the above figure, which of the following statements is FALSE?
A) The total fixed cost curve is curve C. B) Total variable cost and total cost both increase as output increases. C) Marginal cost is equal to the slope of curve A. D) The vertical gap between curves A and B is equal to average fixed cost.
A macroeconomist would most likely study
A) the effects of changing grape prices on the market for oranges. B) the effects of an increase in wage rates on a woman's decision to enter the labor force. C) the effects of a lower income tax rates on the nation's total production of goods and services. D) the effect of increased union wages on the cost of producing automobiles.
What is the relative importance of demand and supply factors in explaining rising health care costs?
What will be an ideal response?