Which of the following arguments could be made as evidence that the market for cage-free eggs is perfectly competitive?
A) As more farmers began selling cage-free eggs, the increase in supply has driven down prices to the point where they just cover the cost of production.
B) Sales of cage-free eggs have increased at a rate of 20 percent per year.
C) The profits earned by farmers who sell cage-free eggs have continued to grow, despite the increasing number of farmers entering this market.
D) The U.S. Department of Agriculture has established standards for the labeling of cage-free eggs.
A
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The construction of the economy's marginal social benefit curve for a public good reflects the fact that
A) all the individuals can consume the same unit of the good. B) more than one supplier can provide the good. C) the same unit of the good cannot be simultaneously shared by more than one person at a time. D) the government can supply a public good at a lower cost than can a private supplier.
Economic surplus is maximized in a competitive market when
A) producers sell the quantity that consumers are willing to buy. B) demand is equal to supply. C) marginal benefit equals marginal cost. D) the deadweight loss equals the sum of consumer surplus and producer surplus.
Most labor economists believe that the supply of labor is
a. less elastic than the demand, and, therefore, firms bear most of the burden of the payroll tax. b. less elastic than the demand, and, therefore, workers bear most of the burden of the payroll tax. c. more elastic than the demand, and, therefore, workers bear most of the burden of the payroll tax. d. more elastic than the demand, and, therefore, firms bear most of the burden of the payroll tax.
In the United States, market shortages of human organs are the result of price ceilings.
Answer the following statement true (T) or false (F)