In the above figure, if 2 million computers are produced per year then the ________ should be produced to achieve the allocatively efficient use of resources
A) marginal cost of a computer exceeds the marginal benefit of a computer, so more computers
B) marginal cost of a computer exceeds the marginal benefit of a computer, so fewer computers
C) marginal benefit of a computer exceeds the marginal cost of a computer, so more computers
D) marginal benefit of a computer exceeds the marginal cost of a computer, so fewer computers
C
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Based on your answer to part (a), find the profit-maximizing output level for each farmer.
In the competitive market for organic corn, market demand is QD = 340 – 2P and market supply is QS= 100 + 4P, where P is the price per bushel, and Q is market output in thousands of bushels. Each individual farmer faces a marginal cost function of MC = 10 + 3q, where q is the single farmer’s output level in thousands.
When there are very few substitutes for a good, the demand for the good will tend to be
A) inelastic. B) elastic. C) unitary. D) perfectly elastic.
Why has the value of ivory threatened the extinction of the elephant, whereas the value of beef has enhanced the survival of the cow?
a. Cows are a common resource, whereas elephants are owned by governments. b. Elephants are larger than cows, requiring more economic resources. c. Elephants live in Africa, where economic resources are scarce. d. Elephants are a common resource, whereas cows are privately owned.
To determine an appropriate congestion tax, an economist has to assume that people respond to incentives.
Answer the following statement true (T) or false (F)