Market failure may lead to
A. Production possibilities.
B. The absence of externalities.
C. An equitable distribution of goods and services.
D. Public goods being underproduced.
Answer: D
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Based on the above figure of the costs at Barney's Bagel Bakery, at which of the following levels of output does the marginal product of labor equal the average product of labor?
A) at 500 bagels B) at 2000 bagels C) at 3000 bagels D) None of the above because the marginal and average products of labor can never be equal.
Refer to Figure 4-3. Kendra's marginal benefit from consuming the third ice cream cone is
A) $13.00. B) $2.50. C) $1.50. D) $0.50.
Marginal revenue product is defined as the amount that an additional unit of the variable input adds to ____
a. marginal revenue b. total output c. total revenue d. marginal product e. none of the above
Which of the following could cause the supply curve of loanable funds to shift to the left?
a. decrease in productivity b. increase in the rate of interest c. decrease in the rate of interest d. increase in productivity e. expectation that future prices will increase