When the marginal cost of producing sweet potatoes equals the marginal benefit, the sweet potato producer has:

a. incurred economic losses.
b. reached the optimal quantity to produce.
c. minimized the total costs of production.
d. avoided incurring any opportunity costs.


Ans: b. reached the optimal quantity to produce.

Economics

You might also like to view...

Which of the following is NOT a situation providing a potential advantage for Mexico that makes it competitive compared to China in trade with the United States?

A) The product line requires quick turn-around time from or to delivery. B) The need to manage a just-in-time inventory system C) Wages are low and the production process is labor intensive. D) The product is heavy and bulky relative to its final value.

Economics

What is the last dollar rule for cost-minimization? Provide a brief explanation (in words) as well as the corresponding mathematical equality

If the firm is producing at a point where the isocost line is steeper than the isoquant, what does the last dollar rule imply (i.e., where is the last dollar most productive, L or K) and how should the firm alter its capital and labor in the long run?

Economics

Under the least squares assumptions for the multiple regression problem (zero conditional mean for the error term, all Xi and Yi being i.i.d., all Xi and ui having finite fourth moments,

no perfect multicollinearity), the OLS estimators for the slopes and intercept A) have an exact normal distribution for n > 25. B) are BLUE. C) have a normal distribution in small samples as long as the errors are homoskedastic. D) are unbiased and consistent.

Economics

These two countries adopted reforms that liberalized their economies during the 1960s and they eventually became two of the world's freest economies. The two economies are

a. Russia and India. b. Nigeria and Zimbabwe c. Hong Kong and Singapore d. Brazil and Venezuela

Economics