Dr. Goldfinger decides to invest in companies which he believes can "improve the productivity and efficiency" of health care services. What would Dr. Goldfinger need to do to try to achieve allocative efficiency?
A) invest in companies that produce up to the point where the marginal cost of the last unit produced is zero
B) invest in companies that produce goods and services based on consumer preferences
C) invest in companies that produce goods and services at the lowest possible cost
D) invest in companies that fairly distribute their products and services
B
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The 2008-2009 recession must have been a result of ________ because otherwise the combination of the ________ cannot be explained
A) a decrease in AD and an increase in AS; rise in the price level and the decrease in real GDP B) a decrease in AD and AS; rise in the price level and the decrease in real GDP C) a decrease in AD and AS; decrease in the price level and the decrease in real GDP D) a decrease in AD and an increase in AS; fall in the price level and the decrease in real GDP E) an increase in AD and AS; rise in the price level and the decrease in real GDP
Because of the relationship between a perfectly competitive firm's demand curve and its marginal revenue curve, the profit maximization condition for the firm can be written as
A) P = MR. B) P = AVC. C) AR = MR. D) P = MC. E) P = AC.
Suppose a new technology allows firms to substitute mechanical tomato pickers for farm laborers. As a result, the demand curve for farm laborers will
A) become less elastic. B) become more elastic. C) shift to the right. D) not be affected.
As the price of a good increases, the marginal utility per dollar spent on that good will also increase
a. True b. False Indicate whether the statement is true or false