Is a monopolistically competitive firm allocatively efficient?
A) No, because it does not produce at minimum average total cost.
B) Yes, because price equals average total cost.
C) No, because price is greater than marginal cost.
D) Yes, because it produces where marginal cost equals marginal revenue.
Ans: C) No, because price is greater than marginal cost.
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Refer to Figure 9.4. If the government establishes a price floor of $40 and government purchases the surplus over quantity demanded, producer surplus will
A) fall by $275. B) fall by $500. C) remain the same. D) rise by $275. E) rise by $500.
Refer to Figure 8.1. At the profit-maximizing level of output, total revenue is
A) $1200. B) $2160. C) $2400. D) $2680. E) $3160.
The wage premium in the United States has risen consistently starting in
a. 1973. b. 1975. c. 1978. d. 1983.
Private property rights are
A. a social cost. B. an externality. C. exclusive rights of ownership. D. property that is owned by everyone and therefore by no one.