In the above figure, if a firm is cleaning up Q2 units of pollution, it is an
A. efficient solution, because marginal social benefits are greater than marginal social costs.
B. efficient solution, because marginal social benefits are equal to marginal social costs.
C. inefficient solution, because marginal social benefits are greater than marginal social costs.
D. inefficient solution, because marginal social costs are greater than marginal social benefits.
Answer: C
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The cost data in the above table data show that production is characterized by
A) economies of scale. B) constant returns to scale. C) decreasing returns to scale. D) More information is needed to answer the question.
When drawn against the real interest rate, output demand increases if
A) current government expenses increase. B) future government expenses increase. C) current taxes increase. D) future taxes increase.
When two ice cream vendors locate next to each other on the beach, they are exhibiting a Nash equilibrium
a. True b. False Indicate whether the statement is true or false
Brittany provides manicures at the only salon in town. Her marginal cost is constant at $5 per client, her fixed cost is $25 per day, and she is able to do 8 manicures per day. On a given day, half of her clients are willing to pay $15 for a manicure; half are willing to pay only $10 . If she charges $15 for those willing to pay a higher price and $10 to her other clients, then her maximum daily
profit equals a. $55 b. $100 c. $60 d. $35 e. $75