The production possibilities frontier illustrates which of the following economic ideas?
A) efficiency
B) tradeoffs
C) opportunity cost
D) all of the above
E) none of the above
D
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The ability of Intel to spread product development cost over a larger number of units of output arises from
A. constant returns to scale. B. minimum efficient scale. C. diseconomies of scale. D. economies of scale.
Suppose N consumers each have an identical demand curve for a good is given by Q = a - bp, where Q is the quantity demanded, p is the price, and a and b are positive constants
What is the market demand curve? Is the slope (in price) of the market demand greater or less than the slope of each individual demand curve?
Pollution is a form of market failure called a negative externality
a. True b. False
Without externalities, _____
a. private costs equal social costs b. private benefits exceed social benefits c. private costs are greater than social costs d. private benefits are lesser than social benefits