Refer to Scenario 16.1 below to answer the question(s) that follow. SCENARIO 16.1: The marginal benefit for a particular food is described by MB = 30 - q, where q refers to the quantity of the food. The marginal cost of producing the food is described by MC = 2q. There is a negative externality associated with food production and the marginal social cost of food production is MSC = 4q.Refer to Scenario 16.1. The efficient output level is ________ and the efficient price is ________.
A. 4.29 units of food; $25.71
B. 0 units of food; $0
C. 10 units of food; $20
D. 6 units of food; $24
Answer: D
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The above table shows the market shares for all the landscaping services in a suburban area. Which of the following mergers would cause the greatest increase in the four-firm concentration ratio?
A) A and B B) D and E C) E and F D) six of the smallest firms
Suppose the daily demand for Coke and Pepsi in a small city are given by QC = 90 - 100PC + 400(PP - PC) and QP = 90 - 100PP + 400(PC - PP), where QC and QP are the number of cans Coke and Pepsi sell, respectively, in thousands per day. PC and PP are the prices of a can of Coke and Pepsi, respectively, measured in dollars. The marginal cost is $0.45 per can for both Coke and Pepsi. What is Coke's inverse demand function?
A. QC = (90 - 400PP) - 500PC B. PC = (0.18 + 0.8PP) - 0.002QC C. QC = (490 - 400PC) D. PC = (400 - 500QC)
An increase in which of the following will shift the economy's productivity (GDP/L) curve?
a. the quantity of laborers b. technology c. capital d. output e. consumption
Reductions in personal income tax rates that increase labor supply and work effort, can be expected to also
a. decrease consumption spending. b. increase consumption spending. c. decrease investment spending. d. increase export sales.