Efficient resource allocation is defined as MC = AC
a. True
b. False
Indicate whether the statement is true or false
False
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Assume at the firm's profit-maximizing level of output P = AVC. In this case, the firm will be:
A) earning a positive economic profit. B) earning economic profit = 0. C) incurring an economic loss. D) breaking even.
Lionfish is an aquatic invasive species in the southeastern U.S. and the Caribbean. Current removal policies focus on harvesting the lionfish for human consumption. However, a fishing license is required to fish in most southern states
Assume the supply of fishing licenses is Qs = 50 + 0.05L + 40P, where L = lionfish population and P = price of a fishing license, and the demand for fishing licenses is Qd = 1400 – 60P. What is the equilibrium price and quantity of fishing licenses when L = 1,000? A) P = $8.5, Q = 890 B) P = $13, Q = 620 C) P = $13.5, Q = 590 D) P = $13.5, Q = 591
Suppose the money market is in the liquidity trap and the Fed increases the supply of money. Individuals would rather hold __________ than __________ because they expect that bond prices can go no __________
A) bonds; money; higher B) bonds; money; lower C) money; bonds; higher D) money; bonds; lower
Assume that the quantities of other resources employed by the firm remain constant.Quantity of Resource Y EmployedMarginal Product of YProduct Price0-- 144$2.002421.903361.804321.705241.606141.50721.40How many units of resource Y would the firm employ at a price of $50 per unit of Y?
A. 2 B. 3 C. 4 D. 5