In long-run competitive equilibrium, the perfectly competitive firm produces where price equals minimum average total cost
a. What is this efficiency criterion called?
b. How does it benefit consumers?
a. Productive efficiency
b. Productive efficiency means that a product is produced at the lowest possible cost. In other words, the product is produced with a minimum amount of scarce resources. Consumers benefit because society can produce more products with its scarce resources.
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A U.S. boycott against Mexican tuna caught in nets was
A) not upheld by the WTO on the grounds that killing dolphins in tuna nets does not harm the United States directly. B) not upheld by the WTO on the grounds that U.S. ships could still use nets to catch tuna. C) upheld by the WTO on the grounds that the use of nets to catch tuna also kills dolphins. D) upheld by the WTO on the grounds that nations can impose any environmental standards on other nations.
The Gini coefficient is calculated by measuring the area between:
A. the line of perfect inequality and the Lorenz curve. B. the line of perfect equality and the Lorenz curve. C. the Lorenz curve and the x-axis. D. the Lorenz curve and the y-axis.
If a firm is able to charge each customer the maximum amount that he or she is willing to pay for its good,
a. the firm is engaging in rent-seeking behavior b. profits for the firm will be lower than for a single-price monopolist c. the firm will be violating federal law d. this is perfect price discrimination e. barriers to entry into the market will fall
Answer the question on the basis of the following demand schedule. Price Quantity Demanded $6 1 $5 2 $4 3 $3 4 $2 5 $1 6 Which of the following is correct?
A. Although the slope of the demand curve is constant, price elasticity increases as we move from high to low price ranges. B. Although the demand curve is convex to the origin, price elasticity of demand is constant throughout. C. Although the slope of the demand curve is constant, price elasticity declines as we move from high to low price ranges. D. A steep slope means demand is inelastic; a flat slope means demand is elastic.