Find the efficient output level for this market.
The market for a chemical pesticide can be modeled as given below, where Q is measured in thousands of pounds:
MSB = 20 – 0.4Q MPB = 20 – 0.3Q MSC = MPC = 12 + 0.1Q
The efficient output level is found where MSB equals MSC, as shown below:
MSB = MSC
20 – 0.4Q = 12 + 0.1Q
QE = 16 thousand pounds
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The above table gives data on two variables. If these data were graphed, the slope of the line would be
A) 1. B) -2. C) 2. D) -4.
The figure above shows the cost, marginal revenue, and demand curves of Golden Chow, a producer of dog food. The market for dog food is monopolistic competition. In the long run as new firms enter, Golden Chow cuts its output to 200 cans per day
Its excess capacity is ________ cans per day. A) 0 B) between 0 and 200 C) between 201 and 400 D) more than 401
When comparing point A, which lies within a utilities possibilities frontier, with point B, which lies on the same utilities possibilities frontier,
A) A is necessarily more efficient than B. B) A is necessarily more equitable than B. C) B is necessarily more efficient than A. D) B is necessarily more equitable than A.
Attempts to determine "what is" are part of __________ economics
A) positive B) normative C) positive and normative D) neither positive nor normative