Which of the following conditions does not need to occur for a market to achieve allocative efficiency?
A. Consumers' maximum willingness to pay equals producers' minimum acceptable price for
the last unit of output.
B. The sum of producer and consumer surplus is maximized.
C. The total revenue received by producers equals the total cost of production.
D. The marginal benefit of the last unit produced equals the marginal cost of producing that
unit.
Answer: C
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Which of the following is a similarity between an English auction and a Dutch auction?
A) The second-highest bidder wins the good in both auctions. B) The bidder who values the good the most wins it in both auctions. C) The bidders submit their bids privately at the same time in case of both auctions. D) In both auctions, the bidders submit their bids privately at different times during the bidding process.
The Dow Jones Industrial Average is computed based on
A) thirty blue-chip stocks. B) five hundred blue-chip stocks. C) all stocks sold on the NYSE. D) all stocks sold on all organized exchanges in the United States
The slope of an indifference curve defined over current and future consumption
a) is constant b) is equal to the rate of interest c) indicates the consumer’s rate of time preference, or impatience d) is flatter when the curve is farther away from the origin than when it is near the origin e) is undefined
Which one of the following about a monopoly is false?
A) A monopoly status could be temporary. B) A monopoly could make profits in the long run. C) A monopoly could break even in the long run. D) A monopoly must have some kind of government privilege or government imposed barrier to maintain its monopoly.