How are efficiency and inefficiency represented on a production possibilities frontier?
What will be an ideal response?
Efficiency is represented by points along the production possibilities frontier. Inefficiency is represented by points inside the production possibilities frontier.
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Menu costs are the costs of:
A. changing prices. B. running a restaurant. C. changing production. D. increasing aggregate demand.
In the market for batteries, the three largest firms earn 90% of the total revenue and there are 35 firms in the industry. This industry is best described as
A) oligopoly. B) monopoly. C) monopolistic competition. D) perfect competition.
Evaluate the following statement. The Cournot model basically assumes that the sole decision of each firm in a duopoly is one of determining how much to produce not which price to set
What will be an ideal response?
Figure 3-20
Refer to . If 40 units of the good are being bought and sold, then
a.
cost to sellers is equal to the value to buyers.
b.
the value to buyers is greater than the cost to sellers.
c.
the cost to sellers is greater than the value to buyers.
d.
producer surplus would be greater than consumer surplus.