Refer to the diagrams in which figures (a) and (b) show demand curves reflecting the prices Alvin and Elmer are willing to pay for a public good, rather than do without it. If the marginal cost of the optimal quantity of this public good is $10, the
optimal quantity must be:
A. 1 unit.
B. 2 units.
C. 3 units.
D. 4 units.
C. 3 units.
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The fact that output gaps will not last indefinitely, but will be closed by rising or falling inflation is the economy's:
A. income-expenditure multiplier. B. self-correcting property. C. short-run equilibrium property. D. long-run equilibrium property.
A monopolistically competitive firm shuts down in the short run if ________
A) marginal revenue equals marginal cost B) total revenues do not cover variable costs C) marginal revenue covers average fixed costs D) average total cost exceeds price
The United States bans most imports from all of the following countries except
A) China. B) Cuba. C) North Korea. D) Iran.
If people expect the price of automobiles to increase drastically next year, it is likely that the demand curve for this year's automobiles will shift to the right
Indicate whether the statement is true or false