Producing the socially optimal (efficient) quantity of goods in an economy is consistent with
a. having prices set, for every good, as low as possible
b. positive externalities and no government intervention in the economy
c. achieving total maximum utility in the economy
d. the value of resources used to produce goods is, for each good, less than the value consumers place on the good
e. society's opportunity costs being understated
C
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Which of the following is likely to lead to an increase in the gross domestic product of a country?
A) An increase in the tax rates in the country B) An increase in the interest rate in the country C) An increase in the capital stock of the economy D) An increase in the unemployment rate in the country
Explain how new technologies, which increase productivity, affect the average variable cost, average total cost, and marginal cost curves
What will be an ideal response?
A monopolist's profit maximizing price is $15 . At MC=MR, the output is 100 units and the MC is $10 . At this level of production, average total costs are $12 . Monopolist's profits are
a. $300 b. $1500 c. $500 d. None of the above
The effect on business of the crowding-out effect in the short run would be reflected by ______.
Fill in the blank(s) with the appropriate word(s).