Competition results in the efficient product mix because
A) producers are setting MRT equal to minus the price ratio while consumers are setting MRS equal to minus the price ratio ensuring that MRT will equal MRS.
B) consumers are on the contract curve.
C) the slope of the production possibility frontier will equal the slope of the contract curve.
D) the distribution of the final output is Pareto efficient.
A
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Refer to the table below. The marginal benefit of the 6th unit of activity is:Units ofActivity TotalCostTotalBenefit0$0$01$2$122$6$223$12$304$20$365$30$406$42$427$56$43
A. $7 B. $1 C. $2 D. $4
The Bahamas and Cayman Islands are known for their warm, sandy beaches and their
A) Edge Act corporations. B) shell banks. C) section 20 affiliates. D) high taxation.
What happens to the demand curve when a nonprice determinant of demand changes?
A. The demand curve shifts horizontally. B. There is a movement along the demand curve. C. The consumer moves to a different price point. D. Nothing changes with the demand curve.
According to the marginal approach to profit maximization,
a. firms should equate total revenue and marginal cost when choosing the optimal output level b. firms should take any action that increases revenue more than costs c. economic profit is zero in the long run d. marginal cost declines until it reaches marginal revenue at the profit-maximizing output level e. marginal costs eventually diminish as more output is produced