The tables above show the marginal costs and benefits from production of paper. If the market is perfectly competitive and unregulated, the
A) allocation of resources is efficient.
B) market equilibrium produces 800 tons more than the efficient amount.
C) market equilibrium produces 1,600 tons more than the efficient amount.
D) market equilibrium produces 800 tons less than the efficient amount.
B
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"Mismatch" unemployment is another name for ________ unemployment
A) frictional B) structural C) cyclical D) natural
In a command economy, the basic economic questions are answered by:
a. central authority. b. None of the answers are correct. c. individual buyers and sellers. d. the traditional methods.
For a monopoly producing any output level greater than one, the marginal revenue curve:
A. lies below the demand curve. B. is minimized when total revenue is maximized. C. lies above the average revenue curve. D. is the same as the demand curve.
How can government policies reduce market failure?
a. Price controls allot resources fairly. d. Business incentives promote efficiency. b. Regulations satisfy special interests. c. Sales taxes distort market price signals.