Production through the firm is often more efficient than market exchange when
a. production requires many transactions among many resource owners
b. production requires few transactions between two resource owners
c. the cost of transacting business through market relations is less than the cost of undertaking the same activity within the firm
d. inputs are easily identified, measured, priced, and hired
e. the costs of determining inputs and negotiating contracts are low
A
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In the figure above, if the government provides the efficient amount of education, what is the tuition?
A) $10,000 per year B) $14,000 per year C) $8,000 per year D) $6,000 per year
The rationale for rent control is that it protects moderate- to low-income families from the burden of rapidly rising rents and from eviction if they are unable to pay. It also prevents landlords from reaping windfalls as property values rise. Opponents note that rent controls usually lead to a reduced supply of rental housing and shortages. The proponents of rent controls support them primarily on the grounds of
A. efficiency. B. equality. C. externalities. D. cost disease of services.
Which of the following is most likely to face extinction?
a. dogs living as pets in households b. dairy cows living on farms and producing milk c. bald eagles living in zoos d. tigers living in the wild
Price discrimination is
A. selling a given product at more than one price, with the price differences being unrelated to differences in cost. B. selling a given product to all customers at the same price and same costs. C. selling a given product at more than one price, with the price differences reflecting differences in marginal cost in providing the product to different groups of customers. D. refusing to sell a given product to some group of customers.