Situation 35-2 ? Dan and Ann live in the same community and both can participate in two activities, producing and stealing. Refer to Situation 35-2. If Dan's MB/MC ratio for producing is currently greater than his MB/MC ratio for stealing, then he will
A. steal more and produce less.
B. steal less and produce less.
C. produce more and steal more.
D. produce more and steal less.
Answer: D
You might also like to view...
In a monopolistically competitive market, the consumer receives the benefit of
A) production at minimum average cost. B) production where price equals marginal cost. C) product differentiation. D) allocative efficiency.
Monopolistic competition is characterized by: a. a small number of firms selling differentiated products. b. a large number of firms selling identical products
c. high barriers to entry. d. a large number of firms selling differentiated products.
In a perfectly competitive market, how do the number and size of suppliers relate to the ability to enter and exit into markets?
What will be an ideal response?
The most desirable inflation rate is the rate that
A. Maximizes the "wealth effect" of inflation. B. Has the least effect on the behavior of companies, investors, consumers, and workers. C. Coincides with an unemployment rate of 0 percent. D. Equals the official goal of 3 percent.