The above figure shows the marginal social benefit and marginal social cost curves of chocolate in the nation of Kaffenia. What is the efficient quantity of chocolate to produce each day?
A) zero
B) 100 pounds
C) 150 pounds
D) 250 pounds
C
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Increasing returns to scale in production means
A) more than 10% as much of all inputs are required to increase output 10%. B) less than twice as much of all inputs are required to double output. C) more than twice as much of only one input is required to double output. D) isoquants must be linear.
Figure 10-1
At which point in is the economy experiencing an economic recession?
a.
A
b.
B
c.
C
d.
D
In conducting quantitative easing, the Fed may decide to purchase mortgage securities to do all of the following EXCEPT:
A. affect long-term interest rates. B. influence average home prices. C. reduce interest rates on home purchases. D. increase the amount of bank reserves.
Which of the following pairs of equations describes the supply and demand curves given in the accompanying demand and supply tables?PriceQuantity SuppliedQuantity Demanded$20040$251040$302040$353040$404040$455040
A. Qs = 2P - 40; Qd = 40, respectively B. Qs = P - 20; Qd = 40, respectively C. Qs = P - 40; Qd = 40P, respectively D. cannot be determined