For productive efficiency to hold
A) price must equal the marginal cost of the last unit produced.
B) price must equal marginal revenue of the last unit sold.
C) the average variable cost must be minimized in production.
D) the average total cost must be minimized in production.
Answer: D
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An economy produces only 1,000,000 computers valued at $2,000 each. Of these, 200,000 are sold to consumers, 300,000 are sold to businesses, 300,000 are sold to the government, and 100,000 are sold abroad. No computers are imported. At the end of the year, the computer manufacturers hold the unsold computers in inventory. What is the value of the investment component of GDP?
A. $0.8 billion B. $0.3 billion C. $0.4 billion D. $0.6 billion
Refer to the figure above. When the demand curve for flash drives is D and the supply curve of flash drives is S1, what is the surplus in the market if the price is $7?
A) 10 units B) 20 units C) 50 units D) 60 units
Which of the following provides the best example of the winner's curse?
a. Sports teams bidding on free agents of uncertain abilities. b. Loyal consumers buying six packs of a popular soft drink at the grocery store. c. Employers paying skilled and experienced workers with considerable job tenure a premium wage. d. An investor estimating the value of his fixed deposit.
Describe the pressures that discourage trade.
What will be an ideal response?