________ efficiency occurs when the firm produces a rate of output at which marginal cost equals the marginal benefit that consumers derive from the good. ________ efficiency occurs when the firm produces at the minimum point on its long-run average-cost curve
a. Social; allocative
b. Productive; accounting
c. Allocative; productive
d. Economic; allocative
c
You might also like to view...
Jerome has a "C" average in his philosophy course and a "B" average in his economics course. He decides to study an extra hour for his philosophy exam. This is an example of
A) ceteris paribus. B) caveat emptor. C) using assumptions to simplify. D) thinking at the margin.
The demand for seats in 10 a.m. classes at the university is higher than the demand for seats in 8 a.m. classes. The supply of seats is fixed. If the university can only charge a single price and wishes to maximize the total number of seats purchased during the day, it should set the price
A) at equilibrium for 8 a.m. classes. B) at equilibrium for 10 a.m. classes. C) midway between the two equilibria. D) below either 8 a.m. or 10 a.m. equilibrium price.
Other things the same, if the money supply rises by 2% and people were expecting it to rise by 5%, then some firms have
a. higher than desired prices, which increases their sales. b. higher than desired prices, which depresses their sales. c. lower than desired prices, which increases their sales. d. lower than desired prices, which depresses their sales.
In the fooling model, should an expansion of aggregate demand cause fooling, the actual real wage ________ while the expected real wage ________
A) rises, rises B) rises, remains constant C) falls, falls D) falls, remains constant E) falls, rises