If productive efficiency characterizes a market
A) the marginal cost of production is minimized.
B) firms produce the goods that consumers desire most.
C) the output is being produced at the lowest possible cost.
D) firms use the best technology available to produce the good.
Answer: C
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The fact that government has a monopoly on force _____
a. means that government can protect individual rights but is strong enough to violate them b. means that government can protect individuals rights yet is strong enough not to violate them c. means that individuals have secure and well-defined property rights d. means that individuals need not worry about threats from other governments
Which of the following examples shows external diseconomies of scale?
a. As Fresh Farms expands, it hires more unskilled workers to tend and harvest crops. b. As Colso Mining expands, the average wage scale for miners increases industrywide. c. As Coyote Bus Service expands, it improves its training of drivers. d. As Jack’s Fisheries expands, it buys more efficient boats.
A firm in a perfectly competitive market:
a. ?can decrease its supply to increase the market price. b. ?can increase its supply to lower the market price. c. ?has to accept the market price for its product. d. ?has to lower the price of its product to sell more output. e. ?can raise the price of its product and sell more output.
Rent seeking in the form of lobbying for an increase in import tariffs by domestic producers
A) increases consumer surplus. B) increases total welfare. C) increases the deadweight loss. D) None of the above.