Fabulous Farms operates in a perfectly competitive market. Which of the following is required for Fabulous Farms to both maximize profits and achieve allocative efficiency?
A. P = MC
B. P > MC
C. P < MC
D. P = MC – MR
A. P = MC
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Use the following table to answer the question below.Giovanni's Production Possibilities ScheduleJorge's Production Possibilities SchedulePounds of Green BeansPounds of CornPounds of Green BeansPounds of Corn0160032040120202408080401601204060801600800If Giovanni produces 40 pounds of green beans and Jorge produces 80 pounds of corn, then the total amount of green bean production equals ________ and the total amount of corn production equals ________. If Giovanni and Jorge specialize in their respective low-cost good, then the total pounds of green bean production equals ________ and the total pounds of corn production equals ________.
A. 200, 100; 320, 160 B. 100, 200; 160, 320 C. 100, 200; 320, 160 D. 200, 100; 160, 320
If Luxury Cabinets, a kitchen cabinet manufacturer, builds a cabinet plant near Big Woods, a timber harvesting farm, to reduce the costs of transporting lumber, the cabinet plant is a(n) ________.
A) information asset B) negotiation asset C) transaction-specific asset D) monitoring cost
A price floor of $23 placed on the market in the graph shown:
A. is binding, and causes a shortage.
B. is non-binding, and does not affect the market.
C. is binding, and causes a surplus.
D. is non-binding, and does not prevent the market from reaching equilibrium.
When TR is increasing as a monopolist's output increases
A. MR is negative. B. MR is positive. C. MR may be positive or negative. D. MR = 0.