The socially efficient level of production occurs where the marginal cost curve intersects
a. average variable cost.
b. average total cost.
c. demand.
d. marginal revenue.
c
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The Phillips curve will shift up with ________ or ________
A) a positive supply shock; an increase in expected inflation B) a positive supply shock; a decrease in expected inflation C) a negative supply shock; an increase in expected inflation D) a negative supply shock; a decrease in expected inflation
An effective government imposed price ceiling will result
A) in a surplus on the market. B) in a shortage on the market. C) in additional revenue for the government. D) in prices for the product falling in the future.
The following is NOT an example of a potential monitoring solution to moral hazard
a. a pre-hire typing test for clerical employees b. closed circuit TVs throughout a warehouse c. GPS tracking devices in repair trucks d. listening in on call center conversations
In the long-run equilibrium of a market with free entry and exit, marginal firms are operating
a. at the point where average variable cost equals marginal cost. b. at the minimum point on their marginal cost curves. c. at their efficient scale. d. where accounting profit is zero.