What are the three conditions that must exist when there is allocation efficiency?
Please provide the best answer for the statement.
Vocative efficiency is achieved when the correct quantity of output is produced relative to other goods and services. Any of the following three conditions define allocation efficiency. At the efficiency point, marginal benefit equals the marginal cost of that level of output. The total of consumer and producer surplus must also be maximized at allocation efficiency. Maximum willingness to pay and minimum acceptable price must also be equal at allocation efficiency.
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What is the opportunity cost of moving from point A to point B?
Refer to Table 4-4. If a minimum wage of $9.50 an hour is mandated, what is the quantity of labor supplied?
A) 390,000 B) 380,000 C) 370,000 D) 340,000
How does an increase in income affect the market for bus rides (inferior good)?
a. The demand curve for bus rides to shift to the right b. The demand curve for bus rides to shift to the left c. The supply curve for bus rides to shift to the right d. The supply curve for bus rides to shift to the left
The model of aggregate demand and aggregate supply
a. is different from the model of supply and demand for a particular market, in that we cannot focus on the substitution of resources between markets to explain aggregate relationships. b. is different from the model of supply and demand for a particular market, in that we have to separate real and nominal variables in the aggregate model. c. is a straightforward extension of the model of supply and demand for a particular market, in which substitution of resources between markets is highlighted. d. is a straightforward extension of the model of supply and demand for a particular market, in which the interaction between real and nominal variables is highlighted.