Suppose a city has 20 citizens. The first 10 citizens each derive marginal benefit from traffic lights according to the function MB = 10 - Q, and the remaining 10 citizens each derive marginal benefit from traffic lights according to the function MB = 20 - Q. If traffic lights cost $20 each to produce, what is the efficient quantity of traffic lights?
A) 14 traffic lights
B) 16 traffic lights
C) 12 traffic lights
D) 9 traffic lights
A
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Which of the following statements is true?
A) Each country as a whole is made better off as a result of international trade, but individuals within each country may be made worse off. B) Within each country, some individuals are made better off as a result of international trade, but one of the countries will be worse off overall. C) Although some individuals are made better off as a result of international trade, both countries may be made worse off overall. D) All individuals in both countries are made better off as a result of international trade.
Between 1950 and today there was a
a. 20 percent drop in the number of farmers, but farm output increased by more than ten times. b. 30 percent drop in the number of farmers, but farm output more than tripled. c. 40 percent drop in the number of farmers, but farm output more than doubled. d. 70 percent drop in the number of farmers, but farm output increased by about five times.
Suppose there are only three firms in a market. The largest firm has sales of $500 million, the second-largest has sales of $300 million, and the smallest has sales of $200 million. The market share of the largest firm is
A. 40 percent. B. 50 percent. C. 100 percent. D. 60 percent.
In the long run, a monopolistic competitor will produce to the point at which
A) average total costs are at the minimum of possible ATC. B) average total costs are higher than the minimum of possible ATC. C) resources are used at the lowest possible cost. D) at the lowest possible price.