Allocative efficiency occurs where:
a. the price of a good is less than the marginal cost of producing it.
b. the price of a good is greater than the marginal cost of producing it.
c. the price of a good is equal to the marginal cost of producing it.
d. the greatest quantity of output is available for sale.
c
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What is the total revenue test?
What will be an ideal response?
Jake sells Star Wars memorabilia on eBay. His annual revenue is $42,000 per year, and the explicit costs of his business are $10,000. What is his accounting profit?
A) $10,000 B) $22,000 C) $32,000 D) $42,000
It is more likely for tacit collusion to occur in the ________ market compared to the ________ market.
A) commercial airline; fast food B) dog food; cellular telephone provider C) fast food; commercial airline D) dog food; commercial airline
In a game of bargaining, the player who is willing to:
A. be cooperative has more bargaining power and so receives a worse payoff. B. hold out longer has more bargaining power and so receives a worse payoff. C. hold out longer has more bargaining power and so receives a better payoff. D. make the first move has more bargaining power and so receives a better payoff.