Refer to the above table. The table represents information on the costs for Ajax Corporation. Ajax operates in a perfectly competitive market and the price of the product is $7. What will be the value of total revenue when quantity sold equals 2?
A. $7
B. $16
C. $21
D. $14
Answer: D
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The primary advantage of Lindahl pricing is _____
a. that it is easy to calculate b. that at the price charged, every individual prefers a unique efficient level of output, increasing diversity in how the public good is provided c. that is necessary for economic efficiency d. that at the price charged, every individual prefers the same efficient level of output, making it more likely that the politically agreed upon output level is identical to the efficient output level
Milk costs $2 and the last unit provides $4 in marginal utility. Cheese costs $4 and the last unit provides $2 in marginal utility. Is this an efficient allocation of resources? If so, why? If not, why not?
What will be an ideal response?
The official poverty income threshold in the United States is
A. based on the cost of a budget that includes food, clothing, and shelter. B. never adjusted for the effects of inflation. C. the same for all families independent of the number of people in the family. D. calculated as three times the cost of a minimally acceptable diet for a family.
Suppose that Figure 7.5 shows an industry's market demand, its marginal revenue, and the production costs of a representative firm. If the industry was perfectly competitive, it will produce a quantity of ________ and charge a price of ________.
A. 35; $65 B. 50; $50 C. 70; $30 D. There is not sufficient information.