If the marginal benefit of a hot dog is greater than its marginal cost, then to increase efficiency,
A) more hot dogs should be produced.
B) fewer hot dogs should be produced.
C) nothing should be done if the marginal benefit is greater than the marginal cost by the maximum amount because in this case the efficient quantity of hot dogs is being produced.
D) production should be halted.
E) More information is needed about the price of a hot dog in order to determine if production should be increased, decreased, or not changed.
A
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Mary says she plans to return to college next semester assuming her car keeps running, tuition fees don't go up, and her daycare provider continues to be dependable. An economist would say that Mary plans to return to college next semester
A) caveat emptor. B) ceteris paribus. C) laissez faire. D) ipso facto.
Why should the United States be concerned over a sharp depreciation of the U.S. dollar in the world marketplace?
What will be an ideal response?
Which of the following expressions represents a cross-price elasticity of demand?
a. percentage change in quantity demanded of bread divided by percentage change in quantity supplied of bread b. percentage change in quantity demanded of bread divided by percentage change in price of butter c. percentage change in price of bread divided by percentage change in quantity demanded of bread d. percentage change in quantity demanded of bread divided by percentage change in income
Which of the following factors would indicate a less elastic demand?
A. The good represents a large fraction of the budget. B. Demand is measured over a longer period of time. C. There are few substitutes. D. The price of the good is high.