If the marginal benefit of consuming another unit of a good is positive, then to reach the allocatively efficient level of output more of the good should be produced and consumed
A) no matter what.
B) as long as the consumer can afford to pay for it.
C) if the total benefit of the good is greater than its total cost.
D) if the marginal benefit of the good is greater than its marginal cost.
D
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Refer to Figure 18.1. The opportunity cost of hang gliders in the United States is
A) 1/4 of a bicycle. B) 1/3 of a bicycle. C) 3 bicycles. D) 4 bicycles.
Which of the following statements is TRUE in the short run?
A) Generally, labor is a fixed input. B) Generally, capital is a fixed input. C) Raw materials are generally considered to be fixed inputs. D) None of the above.
Which of the following is NOT an example of firms trying to prevent resale?
A) Movie theatres check student ID for students' discounted tickets. B) An aluminum company starts its own wire production firm to sell to the aircraft parts at a higher price. C) Government limits the sale of international edition textbooks in the U.S. market. D) Milk producers sell the milk to processed dairy products producers at a lower price.
Jon's income-consumption curve is a straight line from the origin with a positive slope. Now suppose that Jon's preferences change such that his income-consumption curve remains a straight line but rotates 15 degrees clockwise
Jon's demand curve for the good on the horizontal axis A) will shift left. B) will shift right. C) will not change. D) might do any of the above.