An economy is operating with optimum efficiency if
a. the price of the product is greater than marginal cost.
b. the production of more of commodity A entails the production of less of commodity B.
c. marginal cost of output is greater than marginal utility of output.
d. an increase in output would result in a decrease in average cost per unit.
b
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The European Central Bank has its headquarter in
A) London. B) Berlin. C) Frankfurt. D) Paris. E) Brussels.
A pollution tax has the effect of reducing the costs of production for a firm, leading to a rightward shift of the supply curve
a. True b. False Indicate whether the statement is true or false
Lin is maximizing total utility while consuming food and clothing. Her marginal utilities of food and clothing are 50 utils and 25 utils, respectively. If clothing is priced at $10 per unit, the price of a unit of food
a. must be rising b. must be falling c. must equal $10 as well d. must equal $20 e. cannot be determined without additional information.