Refer to Figure 7-2. At the market equilibrium
A) the marginal cost is less than the marginal benefit.
B) the marginal cost is greater than the marginal benefit.
C) the marginal cost is equal to the marginal benefit.
D) the marginal cost is zero.
A
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Farm productivity can always be improved by
a. transforming small plots into larger ones b. encouraging the use of modern equipment c. making sure that each farmer has land in each ecological zone d. encouraging monocropping e. none of the above
When the government grants an inventor a patent
A. the patent holder has less incentive to invest in R&D because one successful invention removes the need to develop others. B. the protection of a current invention would increase spending on R&D. C. he has the exclusive right to make, sell or use his invention for 5 years. D. the patent holder is guaranteed a profit on his invention.
If improvements in technology have reduced the cost of producing personal computers, you accurately predict that in the market for personal computers, there will be a(n)
A. increase in the quantity supplied of personal computers, a reduction in the price, and an increase in the quantity demanded. B. increase in the supply of personal computers, a reduction in the price, and an increase in the demand. C. increase in the supply of personal computers, a decrease in the price, and an increase in the quantity demanded. D. decrease in the supply of personal computers, an increase in the price, and a decrease in the demand.
There are hundreds of companies in the business of providing natural gas to residential users. For the most part, these local gas companies each only serve their local community, so they buy in very competitive markets but sell locally and without competitors. The wholesale market is therefore likely to be
A. monopoly. B. oligopoly. C. monopolistic competition. D. perfect competition.