Refer to the information provided in Figure 2.5 below to answer the question(s) that follow.
Figure 2.5Refer to Figure 2.5. The best point for society would be
A. either Point B or Point C, as the total amount being produced at either of these points is approximately the same.
B. at any of the labeled points, as all of the points represent an efficient allocation of resources.
C. Point C, as at this point there are approximately equal amounts of LCD and OLED televisions being produced.
D. indeterminate from this information, as we don't have any information about the society's desires.
Answer: D
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If a pair-wise majority vote was held and the voters' preferences are in the given table, which option would win the first round of voting?
A. Public transportation
B. Public zoo
C. Public parks
D. It depends on which pair was considered first.
One explanation for the existence of an increasing-cost industry is:
A. perfectly elastic long-run supply schedules are observed in the industry. B. firms produce beyond the point of minimum long-run average total costs. C. as the industry expands, input prices are bid up for some factor of production. D. increasing marginal returns to labor occur.
At a price of $10, the marginal revenue of a monopolist is $6. If the marginal cost of production is $8, what should the monopolist do in order to maximize profits?
A. Increase its price. B. Decrease its price. C. Keep its price at the same level. D. There is not enough information to solve.
A network externality occurs when:
A. a firm has a patent. B. the value of a product to a consumer increase with the number of other consumers who use it. C. a firm has large economies of scale. D. the value of a product to a consumer requires another product.