Assume that the price overestimates the value that society places on the flu vaccine. If firms produce where P = MC, firms will be producing ________ the socially efficient amount of flu vaccine.
A. more than
B. less than
C. exactly
D. sometimes more than and sometimes less than
Answer: A
You might also like to view...
How sensitive is the structural deficit to the state of the economy?
A. It is insensitive to the state of the economy. B. The structural deficit changes cyclically with the economy. C. Changes in the structural deficit trigger opposite swings in the economy. D. The structural deficit changes countercyclically with the economy.
When operating at the profit-maximizing/loss-minimizing level of output, total revenue minus total cost equals
A. $350.
B. $240.
C. $225.
D. -$240.
The amount of income tax owed by a family is
a. not simply proportional to its total income. b. unaffected by deductions. c. total income minus tax credits. d. a constant fraction of income.
A physician's office expenses increase by 10 percent, so the doctor decides to raise the price of office visits. Assuming the demand curve for office visits does not shift, what will happen to the total number of office visits and practice revenues?
a. Office visits and total revenue rise if demand is inelastic. b. Office visits and total revenue stay the same if demand is elastic. c. Office visits will fall and total revenue will rise if demand is inelastic. d. Office visits will rise and total revenue will fall if demand is elastic. e. Office visits and total revenue fall if demand is inelastic.