An increase in the demand for tattoos will lead to a:
a. higher price and a larger quantity sold. b. lower price and a larger quantity sold.
c. higher price and a smaller quantity sold. d. lower price and a smaller quantity sold
a
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As the quantity produced of a good increases, the social welfare generated by that good increases
Indicate whether the statement is true or false
The long-run equilibrium price-output combination for a monopolist is economically inefficient because:
a. it does not operate on the minimum point of its marginal-cost curve. b. it does not produce the level of output at which price equals marginal cost. c. consumer surplus is maximized but not producer surplus. d. producer surplus is maximized but not consumer surplus. e. it operates on the downward sloping portion of the average-total-cost curve.
If a decision maker uses marginal analysis, then the relevant costs are the
A. full costs of a particular activity or product. B. fixed costs that do not vary with the extra activity or output. C. profits obtained on the activity or product. D. average costs for a particular activity or product. E. additional costs of a particular activity or product.
Land of Many Lakes (LML) sells butter to a broker in Albert Lea, Minnesota. Because the market for butter is generally considered to be competitive, LML does not
a. choose the quantity of butter to produce. b. set marginal revenue equal to marginal cost to maximize profit. c. have any fixed costs of production. d. choose the price at which it sells its butter.