If for a firm P = minimum ATC = MC, then:
A. neither allocative efficiency nor productive efficiency is being achieved.
B. productive efficiency is being achieved, but allocative efficiency is not.
C. both allocative efficiency and productive efficiency are being achieved.
D. allocative efficiency is being achieved, but productive efficiency is not.
Answer: C
You might also like to view...
If the Federal Reserve is interested in conducting contractionary policy, what types of policies should it consider?
What will be an ideal response?
In the above figure, the curve labeled MCL is the marginal cost of labor curve and is used in a
A) competitive situation in which individual firms cannot influence the wage rate they must pay. B) competitive situation in which skill differentials create a difference between what a firm must pay labor versus the wage at which households are willing to supply labor. C) monopsony situation in which the firm can influence wages by how much labor it hires, so that the wage rate received by workers is less than the marginal cost of labor. D) monopsony situation in which the firm can influence wages by how much labor it hires, so that the wage rate received by workers is greater than the marginal cost of labor.
Net benefits in the table:Control variableTotal BenefitsTotal CostsNet BenefitsMarginal BenefitMarginal CostMarginal Net BenefitQB(Q)C(Q)N(Q)MB(Q)MC(Q)MNB(Q)0000---190010080090010080021,700300C80020060032,4006001,800700E4004A1,0002,00060040020053,5001,5002,000500500F63,9002,1001,800D600-20074,2002,8001,400300700-40084,400B800200800-60094,5004,5000100900-800104,5005,500-1,00001,000-1,000
A. initially decrease, reach a minimum, and then increase. B. initially remain relatively stable and then decrease. C. remain relatively stable over different values for the control variable. D. initially increase, reach a maximum, and then decrease.
Refer to the above table. How many worker will this firm hire if the weekly wage rate is $1350?
A. 27 B. 28 C. 26 D. 25