The above figure shows the marginal social benefit and marginal social cost curves of coffee in the nation of Kaffenia. For a consumer, the price they are willing to pay for each additional pound of coffee is
A) always less than the economy's marginal social cost of producing that additional pound.
B) equal to their own marginal benefit from consuming that additional pound.
C) equal to their consumer surplus.
D) Both answers B and C are correct.
B
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Everything else held constant, an autonomous monetary policy tightening ________ aggregate ________
A) increases; demand B) decreases; demand C) decreases; supply D) increases; supply
In order for a monopolist to earn an economic profit in short-run equilibrium, marginal revenue must be equal to zero
a. True b. False Indicate whether the statement is true or false
If the opportunity cost of producing a good domestically is less than the opportunity cost of purchasing it on the world market, a country can gain by
A. decreasing production and increasing exports. B. decreasing production and increasing imports. C. increasing production and decreasing imports. D. increasing production and decreasing exports.
Consider Figure 12.3. Relative to the dominant strategy outcome, guaranteed price fixing would lead to:
A. lower prices but higher profits. B. lower prices and lower profits. C. higher prices and higher profits. D. higher prices and lower profits.