Production is efficient when
A) it generates a point beyond the production possibility curve.
B) the maximum output possible is being produced given current levels of resources and technology.
C) technological change occurs.
D) the maximum amounts of the most important good are produced.
B
You might also like to view...
Identify the correct definition of the federal funds rate
A) The federal funds rate is the interest rate at which the Fed lends money to households. B) The federal funds rate is the interest rate at which banks lend money to the Fed. C) The federal funds rate is the interest rate at which banks lend their deposits with the Fed to other banks. D) The federal funds rate is the interest rate at which the Fed lends money to business firms.
Because consumers who have insurance provided by their employers usually only pay a deductible for a visit to the doctor's office
A) they demand a larger quantity of health care services than they would if they paid a price that better represented the true cost of providing the service. B) the insurance companies provide a larger quantity of health care services than they would if the consumer paid a price that better represented the true cost of providing the service. C) the doctors supply a smaller quantity of health care services than they would if the consumer paid a price that better represented the true cost of providing the service. D) they demand a smaller quantity of health care services than they would if they paid a price that better represented the true cost of providing the service.
Suppose Campus Books, a profit-maximizing firm, is the only supplier of the textbook for a given class. The marginal cost of supplying each book is constant and equal to $10, and Campus Books has no fixed costs. The table shows the reservation prices of the eight students enrolled in the class. CustomerReservation Price($/Book)Q60R54S48T42U36V30W24X18What price will Campus Books charge if it must charge a single price to all of its customers?
A. $10 B. $24 C. $18 D. $36
A profit-maximizing firm hires labor per week up to the point at which
A. the marginal revenue product of labor equals the wage. B. the marginal revenue product of labor is equal to zero. C. the marginal revenue product of labor is maximized. D. the difference between the marginal revenue product and the wage is maximized.