Economic inefficiency exists when
A) P = MR.
B) P = MC.
C) MR = MC.
D) P > MC.
Answer: D
You might also like to view...
A pharmaceutical company executive has to decide whether to fund a new drug development project. For this project, a success would earn $90 million and a failure would cost $10 million in lost profits. At what probability of expected success should she fund the project?
a. 0.10 b. 0.20 c. 0.80 d. 0.90
A measure of sensitivity or responsiveness to changes in price or income is called:
a. elasticity. b. technology. c. supply and demand. d. social pressure. e. kickback.
Which of the following terms describes the process wherein many of the different stages of producing a good happen in different geographic locations?
a. supply chain management b. splitting up the supply chain c. splitting up the value chain d. value Chain management
Last year, 1,000 cases of cough syrup were sold at $10; this year, 1,200 cases were sold at $12 . The most probable interpretation of these data is that the
a. supply and demand curves are shifting to the right. b. supply and demand curves are shifting to the left. c. supply curve has shifted to the left, with no change in demand. d. demand curve has shifted to the right, with no change in supply.