If a perfect competitor is currently charging $9 for its product and the marginal cost of the last unit produced is $6, the firm should
a. cut back production and increase price
b. stay at its current price and output level
c. increase price and output
d. increase price and hold output constant
e. increase output
E
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Market failure or inefficient consumption will take place in the market structures EXCEPT for
A) perfect competition. B) monopolistic competition. C) oligopoly. D) monopoly.
The rise in agricultural discontent in the late 19th century can be best explained by
a. the rise of railroad cartels in the Midwest. b. the rise of global market forces not easily observed by the farmers. c. a decline in the value of agricultural exports from 1870 to 1900. d. predatory lending by banks, resulting in increased farm repossessions.
If this game is played once, then
a. Firm A will charge a lower price and firm B will charge a lower price b. Firm A will charge a higher price and firm B will charge a lower price c. Firm A will charge a lower price and firm B will charge a higher price d. Firm A will charge a higher price and firm B will charge a higher price
Which objective of an ideal pollution control policy would involve the principle of continuing to reduce pollution by one more unit only as long as the value of the improved environmental quality is greater than the value of ordinary goods that are sacrificed?
a. achieving pollution reduction at least cost b. motivating advances in abatement technology c. achieving the efficient level of pollution d. achieving a zero level of pollution