Figure 7-16
In Figure 7-16, as we move from A to B,
A. the relative price of machines falls.
B. total cost falls.
C. output increases.
D. labor becomes less productive relative to capital.
Answer: C
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Refer to Table 14-5. What is the Nash equilibrium in this game?
A) Both Ming and Henri offer free pickup and delivery. B) There is no Nash equilibrium. C) Henri offers free pickup and delivery, but Ming does not. D) Ming offers free pickup and delivery, but Henri does not.
A firm should always shut down if its revenue is
A) declining. B) less than its average fixed costs. C) less than its total costs. D) less than its avoidable costs.
Which of the following is most likely to generate a surplus?
A) a price floor B) a price ceiling C) an illegal market D) all of these
________ occurs when economic benefits are distributed fairly
A) Productive efficiency B) Allocative efficiency C) Equality D) Equity