Allocative efficiency involves which of the following?
a. Producing the optimal quantity of some output for a society
b. Selling the minimum number of goods that a society demands
c. Selling the most amount of goods at the highest sustainable price
d. Producing at a level that maximizes profits and minimizes costs
a. Producing the optimal quantity of some output for a society
Allocative efficiency involves producing the optimal quantity of an output for a society.
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When will setting a relatively high entry fee and a low competitive price be the best strategy for a two-part tariff monopolist?
a. When the customers are nearly identical. b. When the customers have inelastic demand for the product. c. When the customers place a relatively low value on their time. d. When the customers can be separated into a number of diverse groups.
A firm's markup is the amount by which ________ exceeds ________
A) price; average total cost B) price; marginal cost C) average total cost; marginal cost D) price; average variable cost
When an economy's resources are not fully employed, then it must be true that the:
A. production point is located outside and to the right of the production possibilities curve. B. production point is located along the production possibilities curve. C. production point is located inside and to the left of the production possibilities curve. D. production possibilities curve shifts to the left.
Steve and Karen decide to watch a movie on Netflix using a promotion code so they do not need to pay for that movie. We know that
A) both bear the same opportunity cost because they are seeing the same thing. B) both bear the same opportunity cost because the tickets have the same face value. C) both bear an opportunity cost that depends on what each person is giving up to watch the movie. D) neither bears an opportunity cost since neither needs to pay for the movie.