The market equilibrium for a public good occurs at the intersection of the market demand and market supply curves
a. True
b. False
Indicate whether the statement is true or false
True
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The marginal benefit of an activity is
i. the benefit from a one-unit increase in the activity. ii. the benefit of a small, unimportant activity. iii. measured by what the person is willing to give up to get one additional unit of the activity. A) i only B) ii only C) ii and iii D) i and iii E) iii only
According to the text, the AT&T corporation was deregulated primarily by
a. requiring that competing companies have access to AT&T's facilities b. declaring AT&T the legitimate monopoly of telephone service in the United States c. creating a special Telephone Advisory Commission d. ending all government regulations regarding the domestic telephone industry e. requiring AT&T to share patents with competitors
Diseconomies of scale arise primarily because:
A. the short-run average total cost curve rises when marginal product is increasing. B. of the difficulties involved in managing and coordinating a large business enterprise. C. firms must be large both absolutely and relative to the market to employ the most efficient productive techniques available. D. beyond some point marginal product declines as additional units of a variable resource (labor) are added to a fixed resource (capital).
When MFC > MRP, a firm in a competitive market will
A) stop hiring additional workers. B) hire more workers. C) earn additional profits. D) layoff workers.