Refer to Figure 4-5. The figure above represents the market for pecans. Assume that this is a competitive market. At a quantity of 12,000 pounds
A) the marginal cost of pecans is greater than the marginal benefit; therefore, output is inefficiently high.
B) the marginal benefit of pecans is greater than the marginal cost; therefore, output is inefficiently high.
C) the marginal cost of pecans is greater than the marginal benefit; therefore, output is inefficiently low.
D) producers should lower the price to $3 in order to sell the quantity demanded of 12,000.
A
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Refer to Figure 18.4. With an import ban, what is the equilibrium quantity of gloves in Duckland?
A) 100 B) 80 C) 60 D) 40
Refer to Table 4-6. The table above lists the marginal cost of polo shirts by Marko's, a firm that specializes in producing men's clothing. If the price of polo shirts decreases from $15 to $10
A) there will be a shortage of polo shirts. B) producer surplus will fall from $13 to $3. C) the marginal cost of producing the third polo shirt will increase to $25. D) consumers will buy no polo shirts.
The ratio of bank capital to bank assets is known as the bank's
A) leverage ratio. B) net interest margin. C) return on equity. D) return on capital.
Chloe talked to several stockbrokers and made the following conclusions. Which, if any, of Chloe's conclusions are correct?
a. It is relatively easy to reduce firm-specific risk by increasing the number of companies one holds stock in. b. Stock prices, even if not exactly a random walk, are very close to it. c. Some people have made a lot of money in the stock market by using insider information, but these cases are not contrary to the efficient markets hypothesis. d. All of Chloe's conclusions are correct.