The above figure shows the marginal social benefit and marginal social cost curves of doughnuts in the nation of Kaffenia. What is the efficient quantity of doughnuts to produce each day?
A) 100 dozen
B) 200 dozen
C) 300 dozen
D) 500 dozen
B
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If the marginal product of labor is 100 and the price of labor is 10, while the marginal product of capital is 200 and the price of capital is $30, then what should the firm?
a. The firm should use relatively more capital b. The firm should use relatively more labor c. The firm should not make any changes – they are currently efficient d. Using the Equimarginal Criterion, we can't determine the firm's efficiency level e. Both c and d
By differentiating their products and promoting brand name loyalty, monopolistically competitive firms can raise prices without losing all their customers
a. True b. False Indicate whether the statement is true or false
A stable monetary environment will typically lead to a. inflation
b. producers and consumers better coordinating their decisions through markets. c. independence of central banks. d. increased trade deficits and limited budgets deficits.
Refer to the above diagram. At output level Q average fixed cost:
A. is equal to QE. B. is equal to EF. C. is measured by both QF and ED. D. cannot be determined from the information given.