According to benefit-cost analysis
a. identification of the “acceptable” risk level is based on the criterion of allocative efficiency
b. the efficient risk level is found where the MSB and MSC of risk reduction are equal
c. the risk level associated with the maximum difference between TSB and TSC of risk reduction is allocatively efficient
d. all of the above
e. none of the above
d. all of the above
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The concept of price elasticity of supply measures the
A. sensitivity of sellers to price changes. B. slope of the supply curve. C. number of sellers in a market. D. extent to which the supply curve shifts as the result of a price decline.
Suppose a perfectly competitive market is in long-run equilibrium. If there is a permanent increase in demand,
A) at least in the short run, some firms will increase their output. B) at least in the short run, the price will increase initially. C) new firms will enter the market. D) All of the above answers are correct.
In the above figure, total revenue for this profit-maximizing monopolistically competitive firm is
A) $50,000. B) $91,000. C) $96,000. D) $100,000.
An example of an explicit cost for the owner of a tattoo parlor would be the wages that she could earn if she worked as a graphic artist for an advertising agency
a. True b. False Indicate whether the statement is true or false