If an average cost pricing rule is imposed on the firm in the figure above, the price will be
A) $5 per unit.
B) $25 per unit.
C) $15 per unit.
D) $20 per unit.
C
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When production efficiency does NOT occur,
i. an economy is producing at a point within its PPF. ii. there are unemployed resources. iii. allocative efficiency cannot occur. A) i only B) i and ii C) iii only D) i and iii E) i, ii, and iii
The typical concave (i.e., bowed-out) shape of the production possibilities frontier reflects the law of increasing opportunity cost
a. True b. False
The international oil price hike by OPEC was an adverse supply shock faced by the U.S. in the 1970s
a. True b. False Indicate whether the statement is true or false
Because of the lack of buyer's information about a perfectly functioning used car:
A. the market will eventually become saturated with high quality cars. B. sellers of perfectly functioning used cars will be more likely to enter the market. C. the buyer will pay less than what it's worth because of the chance that it will be a lemon. D. All of these statements are true.