Which of the following is the best example of a good or service with an external benefit?
A) gasoline
B) education
C) garbage disposal
D) fertilizers
E) bread
B
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Refer to Figure 4-5. The figure above represents the market for pecans. Assume that this is a competitive market. At a quantity of 12,000 pounds
A) the marginal cost of pecans is greater than the marginal benefit; therefore, output is inefficiently high. B) the marginal benefit of pecans is greater than the marginal cost; therefore, output is inefficiently high. C) the marginal cost of pecans is greater than the marginal benefit; therefore, output is inefficiently low. D) producers should lower the price to $3 in order to sell the quantity demanded of 12,000.
Diseconomies of scale occur
a. before the optimal scale is reached. b. at the optimal scale of operation. c. after the optimal scale is reached. d. prior to the lowest point of the ATC curve.
A function that indicates the maximum output per unit of time that a firm can produce, for every combination of inputs with a given technology, is called
A) an isoquant. B) a production possibility curve. C) a production function. D) an isocost function.
Excess reserves in a bank are the difference between required reserves and the bank's total net worth.
Answer the following statement true (T) or false (F)