Economic efficiency is a market outcome in which the marginal benefit to consumers is equal to the marginal cost of production and the sum of consumer surplus and producer surplus is maximized
Indicate whether the statement is true or false
TRUE
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Which of the following is an example of an intermediate good?
A. An antique car sold to the highest bidder B. A pair of skis sold by a sporting goods retailer to a skier C. The lumber produced by Boise Cascade and sold to a builder of old houses D. A share of IBM stock
If society were to maximize the utility of its best-off member, the final allocation would be
A) perfect equity. B) on the contract curve. C) Pareto-efficient. D) one in which one person gets everything.
An increase in the price of a resource will cause a movement along the demand curve for that resource
a. True b. False
Assume a company is at a point in production where marginal product is above average product. Which of the following must be true?
A. Marginal product must be rising. B. Diminishing marginal product must not have set in yet. C. Average product must be rising. D. All of these are true.