Refer to the figure below. At the private market equilibrium quantity, the marginal cost of the last unit produced is ________ the social marginal benefit of the last unit produced.
A. less than
B. more important than
C. equal to
D. greater than
Answer: A
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How would each of the following affect the firm's marginal, average, and average variable cost curves?
a. An increase in wages b. A decrease in material costs c. The government imposes a fixed amount of tax. d. The rent that the firm pays on the building that it leases decreases.
Monopolies misallocate resources because
A) price does not equal marginal cost. B) price does not equal average variable cost. C) marginal cost does not equal average total cost. D) profits are usually positive.
Two nations with differing comparative advantages will be able to consume more if they specialize and trade with each other than if they did not specialize or trade with each other.
Answer the following statement true (T) or false (F)
Even though in oligopoly the actions of one firm have a perceptible effect on the other firms, oligopoly firms act independently.
Answer the following statement true (T) or false (F)