A perfectly competitive industry achieves allocative efficiency when
A) goods and services are produced at the lowest possible cost.
B) goods and services are produced up to the point where the last unit provides a marginal benefit to consumers equal to the marginal cost of producing it.
C) it produces where market price equals marginal production cost.
D) firms carry production surpluses.
Answer: B
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Relative to the yen, from 2007-2012 the U.S. dollar
A) appreciated due to an increase in the interest rate differential and expectations of a higher future exchange rate. B) appreciated due to a decrease in the interest rate differential and expectations of a lower future exchange rate. C) depreciated due to an increase in the interest rate differential and expectations of a higher future exchange rate. D) depreciated due to a decrease in the interest rate differential and expectations of a lower future exchange rate.
Over the inelastic range of a demand curve, there is
A) a positive relationship between a given percentage change in price and a change in total revenues. B) a negative relationship between a given percentage change in price and a change in total revenues. C) an increase in total revenues regardless of an increase or decrease in price. D) no relationship between changes in price and changes in total revenues.
The minimum wage is constant across the United States
a. True b. False
What name is given to the plant and equipment used by firms in production?
A. Production function B. Physical capital C. Productivity D. Aggregate production function