If a market is such that, at the market equilibrium quantity, the benefit of the last unit produced just equals its marginal cost
a. it has earned a positive economic profit
b. it has achieved productive efficiency
c. it has achieved allocative efficiency
d. it has achieved economies of scale
e. there are further trades than can increase producer surplus
C
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Since 1980
A) banks have decreased risk taking to offset the decline in profits. B) banks have offset the decline in profits from traditional activities with increased income from off-balance-sheet activities. C) banks have offset the decline in profits from off-balance-sheet activities with increased income from traditional activities. D) bank profits have grown rapidly due to deregulation.
The Stackelberg model of oligopoly assumes that each of the two producers will choose prices instead of quantities and neither will change price in response to the other's decision
Indicate whether the statement is true or false
The price elasticity of demand is usually equal to the slope of the demand curve
a. True b. False
Suppose that the economy is at its long-run equilibrium and the government increases its purchases. Which will NOT occur as the economy moves back to its long-run equilibrium?