Economic efficiency in a competitive market is achieved when
A) producer surplus equals the total amount firms receive from consumers minus the cost of production.
B) the marginal benefit equals the marginal cost from the last unit sold.
C) consumers and producers are satisfied.
D) economic surplus is equal to consumer surplus.
B
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De minimis risk
a. is the goal required by law under President Reagan’s Executive Order 12291 b. is applicable only to voluntary risk c. is a negligible level of risk such that reducing it further would not be cost justified d. is identical to a zero-risk standard
Refer to Figure 9-3. With a quota in place, what is the quantity consumed in the domestic market?
A) 10 million pounds B) 28 million pounds C) 34 million pounds D) 40 million pounds
Public goods are desired because
A) people want and value them but the private sector will not make them available. B) we want the government to spend our tax dollars. C) they came in small units. D) they make supply equal to demand for private goods.
A monopolistic competitor: a. faces a perfectly elastic demand curve. b. faces an elastic demand curve
c. faces a unit elastic demand curve. d. faces an inelastic demand curve.