On the Lorenz curve, a perfectly equal distribution of income would be represented by:
A. an upward-shaped curve.
B. a vertical line.
C. a line with a slope of 1.
D. a horizontal line.
Answer: C
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A pure monopoly is not allocatively efficient because at the profit-maximizing level of output ________.
A. P > MR B. P > AVC C. P > ATC D. P > MC
Consider two firms competing to sell a homogeneous product by setting price. The inverse demand curve is given by P = 20 ? Q. Firm 1 has MC1(Q1) = 2 and firm 2 has MC2(Q2) = 2.25. Based on this information, we can conclude that the market price will be:
A. $2 and each firm will produce 9 units. B. $2.25 and each firm will produce 8.875 units. C. $2 and firm 1 will produce 18 units and firm 2 will produce 0 units. D. $2.24 and firm 1 will produce 17.76 units and firm 2 will produce 0 units.
Voters' Ordered PreferencesAbbyBobCarloPublic parksPublic zooPublic transportationPublic zooPublic transportationPublic parksPublic transportationPublic parksPublic zooIf a pair-wise majority vote was held, the voters' preferences are shown in the table, and Carlo is setting the agenda for votes, which pair will he put up for vote first?
A. Public zoo and public parks B. Public transportation and public zoo C. It will not matter, as it will not affect the outcome of the voting. D. Public parks and transportation