Suppose Gizmo Inc. is willing to sell one gizmo for $10, a second gizmo for $12, a third for $14, and a fourth for $20, and the market price is $20. What is Gizmo Inc.'s producer surplus?
A. $56
B. $24
C. $20
D. $10
Answer: B
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What will be an ideal response?
A redistributive program that taxes the rich and gives to the poor _____
a. is an example of equality of opportunity in action b. is an example of equality of results in action c. is an example of the an economically efficient transfer d. is an example of a procedural theory of justice in action
The ability to set a price greater than marginal cost guarantees an economic profit for the monopolistic competitor (assuming P > AC)
Indicate whether the statement is true or false
The marginal productivity theory of distribution has been criticized because
a. it assumes that the existing distribution of ownership factors is fair and just when it may not be. b. it does not tell us much about real policy matters. c. a factor's MRP does not in any way correspond to productive effort. d. All of the above are correct.