Allocative efficiency requires that
a. MC equals ATC.
b. MC equals P.
c. AR equals AFC.
d. MC equals MR.
b. MC equals P.
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The public interest view of Fed motivation holds that the Fed acts in the interest of
A) the general public. B) banks. C) Congress. D) itself.
Fabien offers to sell his Graphic Signs LLC business to Hanna for $100,000. Hanna replies, “The price is too high. I will pay $75,000.” Hanna has
a. made a counteroffer without rejecting the offer b.rejected the offer without making a counteroffer, c. accepted the offer. d. rejected the offer and made a counteroffer.
An externality exists when
A) there are private costs. B) there are internal costs. C) there are external costs. D) there are opportunity costs.
Refer to Scenario 9.1 below to answer the question(s) that follow. SCENARIO 9.1: Amy borrowed $20,000 from her parents to open a bagel shop. She pays her parents a 5% yearly return on the money they lent her. Her other yearly fixed costs equal $9,000. Her variable costs equal $30,000. In her first year, Amy sold 40,000 dozen at a price of $1.50 per dozen. Refer to Scenario 9.1. Amy's total fixed costs equal
A. $1,000. B. $9,000. C. $10,000. D. $21,000.