Efficiency in the choice of outputs requires that marginal cost be equal to marginal revenue and nothing else.
Answer the following statement true (T) or false (F)
False
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Suppose potatoes were produced in Canada by many, many firms in perfect competition. In Belgium, only one firm produces potatoes for the Belgium market. Suppose as well that for the competitive firms and the monopoly, minimum ATC is the same. We would expect then, that in Belgium the price of potatoes is _____________ and ____________ potatoes are produced and sold than in Canada
a. higher; more b. lower; more c. higher; fewer d. lower; fewer e. the same; fewer
Country X experiences an increase in Real GDP and an increase in per-capita Real GDP. It follows that
A) the residents of country X are happier than they used to be. B) the benefits of economic growth outweigh the costs of economic growth. C) the costs of economic growth outweigh the benefits of economic growth. D) all the residents of country X are "richer" in terms of goods and services than they used to be. E) none of the above
Minimum wage creates a(n) ______ of low-skilled workers.
a. scarcity b. equilibrium c. surplus d. shortage
The central problem of economics is the
A) Distribution of goods and services to those in need. B) Human wants exceeding the availability of resources. C) Inefficiency of government operations. D) Labor unemployment.