Allocative efficiency occurs when the:
A. minimum of average total cost equals average revenue.
B. marginal revenue equals marginal benefit to society.
C. minimum of average total cost equals marginal revenue.
D. marginal cost equals the marginal benefit to society.
Answer: D
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From 1948 to 2010, the United States has experienced only 4 recessions
Indicate whether the statement is true or false
The prisoners' dilemma has an equilibrium that is
A) a Nash equilibrium and both players confess. B) not a Nash equilibrium and both players confess. C) a Nash equilibrium and both players deny. D) not a Nash equilibrium and both players deny.
Refer to Table 5.4. If at Job B the $20 outcome occurs with probability .2, and the $50 outcome occurs with probability .8, then in absolute value
A) Y = Z = $6. B) Y = Z = $24. C) Y = Z = $35. D) Y = $24; Z = $6. E) Y = $6; Z = $24.
Table 30.1Number of workers (per hour)Total output (per hour)Marginal physical product (output per worker)Total revenue (dollars per hour)Marginal revenue product (dollars per hour worker)14---________---210________________________315________________________419________________________522________________________Assume that the product price is $4 per unit and that the hourly wage for workers is $12. Neither price nor wage changes with output. In Table 30.1, how many workers should be hired?
A. 3. B. 2. C. 4. D. 5.