Productive efficiency occurs at the point where
A. consumer surplus exceeds producer surplus by the greatest amount.
B. the production technique minimizes cost.
C. the production technique minimizes economic surplus.
D. marginal benefit exceeds marginal cost by the greatest amount.
Answer: B
You might also like to view...
A neighborhood voted to develop a vacant lot into a vegetable garden. All of the neighbors worked the land and sowed the seeds. A few neighbors picked and ate the produce before the other neighbors had a chance. Which of the following could solve this example of the Tragedy of the Commons?
a. The neighborhood divides the lot into equal size plots and each family can plant and harvest only on their plot. b. The neighborhood continues to work the land and sow the seeds as a group, but sells all of the produce to willing buyers and reinvests the proceeds into the garden for the next year. c. The neighborhood decides to stop gardening on this land because there is no equitable way to allocate the produce. d. Both a and b are possible solutions to this example of the Tragedy of the Commons
Under a progressive tax system, the marginal tax rate could be equal to the average tax rate only when a taxpayer
a. has a very high income. b. has a very low income. c. is self-employed. d. invests in a retirement plan.
A nation can produce two products: tanks and autos. The table below is the nation's production possibilities:
Refer to the above table. The total opportunity cost of three units of tanks is:
A. 6 units of tanks
B. 350 units of autos
C. 650 units of autos
D. 1000 units of autos
If the marginal product of a worker for a calculator manufacturer is 10 calculators, and the price of a calculator is $10, the firm's marginal revenue product is
A. $1.00. B. $10.00. C. $100.00. D. $1,000.00.