The above figure shows the marginal social benefit and marginal social cost curves of coffee in the nation of Kaffenia. There is no external cost
What is the marginal cost to the economy of Kaffenia of producing the four hundredth pound of coffee each day? A) $.50 per pound
B) $1.00 per pound
C) $2.00 per pound
D) $4.00 per pound
D
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Which of the following factors are most important for determining the economic growth of a country?
A) The country's level of resources B) The independence of the country's central bank C) The country's rates of saving and investment D) The level of sophistication of a country's financial markets
In the markets for goods and services in the circular-flow diagram,
a. households and firms are both buyers. b. households and firms are both sellers. c. households are buyers and firms are sellers. d. households are sellers and firms are buyers.
If a natural disaster were to cause a negative long-run supply shock to the economy, once the economy adjusts, the new equilibrium will be at a:
A. higher price level and lower level of output. B. lower price level and lower level of output. C. higher price level and higher level of output. D. lower price level and higher level of output.
Preferences have just shifted away from beef and into mutton. If you are a sheep rancher, the best profit-maximizing strategy is to
A. shut down. B. cut prices to increase market share. C. produce as much as possible to earn profits in the short run. D. shift some of your ranching capacity into cattle raising.