Refer to the diagram. By producing at output level Q:
A. neither productive nor allocative efficiency is achieved.
B. both productive and allocative efficiency are achieved.
C. allocative efficiency is achieved, but productive efficiency is not.
D. productive efficiency is achieved, but allocative efficiency is not.
B. both productive and allocative efficiency are achieved.
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The smaller the amount saved out of a change in disposable income, the
A) more horizontal the consumption function. B) larger the MPC. C) more net taxes affect consumption. D) smaller is autonomous consumption. E) smaller the MPC.
Product differentiation in monopolistically competitive markets implies that: a. firms make economic profits in the long run
b. firms will produce at the minimum of the average total cost curve in the long run. c. individual firms face downward-sloping demand curves. d. firms are certain to earn economic profits in the short run.
Repeated hurricanes in Florida have caused some retirees to choose to retire to Arizona instead. Based on this information, retirement housing in Florida and that in Arizona are what kinds of goods?
A. Florida housing has become a luxury good, and Arizona housing had been an inferior good. B. Florida housing and Arizona housing are complementary goods. C. Florida housing has become an inferior good, and Arizona housing had been a luxury good. D. Florida housing and Arizona housing are substitutes.
According to the book, the most important strategy to a firm is its
A) pricing strategy. B) new product strategy. C) cost control procedures. D) all of these choices were reported to be equally important.