The figure above shows the marginal revenue and costs of a perfectly competitive firm. When the firm produces 170 units
A) marginal cost is less than marginal revenue.
B) marginal revenue equals marginal cost.
C) total revenue is less than total cost.
D) total revenue equals total cost.
B
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Which of the following goods is rival in consumption and is also excludable?
A) A fireworks display B) A movie shown on cable television C) A DVD D) A magic show in a public park.
If Tom and Di specialize in producing the goods in which he and she have a comparative advantage and they exchange goods, then ________
A) each will produce a combination of goods that is within her/his production possibility frontier B) they will lose because they are no longer able to produce and consume both goods C) each will gain because each can consume a combination of goods that is outside her/his production possibility frontier D) one of them will gain and the other will lose
Molly needs 30 minutes to wash the car and 45 minutes to mow the lawn. Renee needs 1 hour to wash the car and 2 hours to mow the lawn. Which of the following statements is correct?
a. Molly should specialize in both tasks. b. Renee should specialize in both tasks. c. Each woman should specialize in the task in which she has the absolute advantage. d. Absolute advantage is not an appropriate guide for determining specialization. e. Neither woman should specialize.
Equity is the condition in which the economy is producing what people want at the least possible cost.
Answer the following statement true (T) or false (F)