From a social viewpoint, when price = marginal cost:
a. the economy as a whole would be better off if more was produced.
b. the economy as a whole would be better off if less was produced.
c. firms would be better off by producing less.
d. the economic efficiency would be attained as a whole.
e. the consumers would be better by consuming less.
d
You might also like to view...
Based on the model, the competitive price level is
Consider the following model for the production of refined oil: MSC = 10 + 0.5Q; MEC = 0.3Q; MSB = 30 – 0.3Q; MEB = 0. a. PC = $18 b. PC = $20 c. PC = $25 d. PC = $40
In a country with floating exchange rates and low capital mobility, an increase in government spending will be
A) highly effective. B) less effective than with high capital mobility. C) not effective at all. D) harmful to the growth of real incomes.
What effect have Medicare subsidies had on the consumption of medical services?
A) The consumption of medical services has been unaffected, because people don't consider the financial cost when seeking services related to their health. B) The consumption of medical services has been unaffected, because government restrictions have prevented patients from seeking a level of care above and beyond what they would choose if they had to pay for medical treatment out of pocket. C) The consumption of medical services has increased because Medicare subsidies give people the incentive to seek more care than they would otherwise. D) The effect cannot be measured because it is difficult to quantify the amount of resources devoted to our health care system.
Assume that for the T = 2 time periods case, you have estimated a simple regression in changes model and found a statistically significant positive intercept. This implies
A) a negative mean change in the LHS variable in the absence of a change in the RHS variable since you subtract the earlier period from the later period B) that the panel estimation approach is flawed since differencing the data eliminates the constant (intercept) in a regression C) a positive mean change in the LHS variable in the absence of a change in the RHS variable D) that the RHS variable changed between the two subperiods