A perfectly competitive firm currently sells 30,000 cartons of eggs at $0.50 each. If the firm wants to sell one more carton of eggs, the firm
a. should raise its price above $0.50
b. should price the carton at $0.50
c. must sell the carton for less than $0.50
d. cannot sell an additional carton at any price because there are other egg farmers in the market
Ans: b. should price the carton at $0.50
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In a certain economy, the components of aggregate spending are given by: C = 500 + 0.75(Y - T) - 500rI = 300 - 500rG = 400NX = 30T = 40 Given the information about the economy above, which expression below gives autonomous expenditures?
A. [1,230 - 1,000r] B. [1,200 - 1,000r] C. [1,200 - 1,000r] + 0.75Y D. [1,270 - 1,000r] + 0.75Y
Government works to create a competitive marketplace to help foster competition, yet it also awards patents which prevent competition. Why are both competition and the patent system essential to creating a large economic pie?
What will be an ideal response?
The Pareto optimality concept is _____
a. equivalent to the concept of economic efficiency b. equivalent to Pareto superiority c. equivalent to utilitarianism d. equivalent to cost-benefit analysis
Why do water supply problems exist in many parts of the world?
a. Efforts to build large-scale reservoirs in arid countries have stalled due to the enormous expense involved in completing these projects. b. Water markets are missing or incomplete. c. Global warming has increased the evaporation rate of water by over 10%. d. The water supply is unfit for public consumption in many areas due to pollution.