Refer to Figure 4-6. At the price P2, consumers are willing to buy the Q2 pounds of granola. Is this an economically efficient quantity?
A) Yes, otherwise consumers would not buy Q2 units.
B) Yes, because the price P2 shows what consumers are willing to pay for the product.
C) No, the marginal benefit of the last unit (Q2 ) exceeds the marginal cost of that last unit.
D) No, the marginal cost of the last unit (Q2 ) exceeds the marginal benefit of the last unit.
C
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a. an increase in Treasury interest rates and an increase in most other interest rates. b. an increase in Treasury interest rates and a decrease in most other interest rates. c. a decrease in Treasury interest rates and an increase in most other interest rates. d. a decrease in Treasury interest rates and a decrease in most other interest rates.
The exchange rate between yen and dollars at one point in 2010 was 83 yen per dollar. If a Big Mac, fries, and a Coke cost $3.91 in San Francisco, how much should the same order cost in yen in Osaka?
a. 0.03 b. 325 c. 392 d. 422
Periods during which real GDP rises are called recessions
a. True b. False Indicate whether the statement is true or false
If the marginal propensity to save (MPS) is 0.25, the value of the spending multiplier is:
A. 1. B. 2. C. 4. D. 9.