Explain the condition where society would be better off when more of a good is produced
What will be an ideal response?
When the price of a good is greater than the marginal cost to produce that good, society will be better off if more of that good is produced.
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Refer to the scenario above. What is the difference between the future value of John's deposit and Wendy's deposit after one year?
A) $10 B) $40 C) $60 D) $100
All of the following can be used to compute average profit except
A) marginal profit minus marginal cost. B) average revenue minus average total cost C) total profit divided by quantity. D) price minus average total cost.
Comparing firms in perfectly competitive markets to monopoly firms, which can earn economic profits in the long run?
Sarah used to be a music teacher at a local school, but got let go last year due to budget cuts. Sarah now works part-time as a waitress while looking for another teaching job. Sarah would be considered:
A. frictionally unemployed. B. structurally unemployed. C. underemployed. D. real-wage unemployed.