Suppose that a perfectly competitive market is in equilibrium. Then,
a. the equilibrium quantity provides the maximum possible benefit to buyers
b. the equilibrium quantity provides the maximum possible benefit to buyers and sellers combined
c. total (producer + consumer) surplus is equal to price x quantity.
d. an additional unit, if produced, would produce a benefit that exceeds its cost of production
e. an additional unit could be produced at a cost to some producer that is less than the benefit to some consumer
B
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If a household has a husband, wife, and two kids, has a standard deduction of $12,600, has itemized deductions of $13,850, and personal exemptions of $16,000 (4*$4,000), then the first ________ of income is federal income tax free.
A. $29,850 B. $41,450 C. $37,100 D. $28,600
For Product X, the income elasticity of demand is -2.56. Which of the following is therefore TRUE?
A) Product X is a necessity. B) Product X is a luxury. C) Product X is an inferior good. D) Product X is a normal good.
Monopolistically competitive firms increasing their advertising will definitely achieve which of the following?
A) shift their average total cost curve up B) shift their demand curve to the right C) increase their economic profit D) shift their demand curve to the right and shift their average total cost curve up
Describe the connections between rising income and environmental and social indicators. Which indicators improve and which worsen as national income rises?
What will be an ideal response?