This table shows the marginal benefits from widgets obtained by the only three people who value them.Number of widgetsMarginal Value to?HelenIngridJane1st$10$8$62nd$4$3$23rd$2$1$1Suppose widgets cost $8.50 to produce. If widgets are a private good, how many will be produced by market incentives, and is that the right (efficient) number?
A. Two will be produced, and this is the socially optimal amount.
B. One will be produced, and this is the socially optimal amount.
C. Zero will be produced, and this is below the socially optimal amount.
D. One will be produced, and this is below the socially optimal amount.
Answer: B
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The demand curve faced by a monopolistically competitive firm coincides with its marginal revenue curve
a. True b. False Indicate whether the statement is true or false
In the following graph, the price of capital is $100 per unit. What is the marginal rate of technical substitution at point C?
A. 0.14 B. 4 C. 0.4 D. 1.4 E. none of the above
Which of the following types of unemployment is likely to exist in an economy that is at its potential output level?
What will be an ideal response?
Measures of the Solow residual show it to be
A. strongly procyclical. B. strongly countercyclical. C. mildly procyclical. D. mildly countercyclical.