Productive efficiency is achieved when firms produce goods and services
A) at the highest profit margin. B) at the lowest cost.
C) most desired by society. D) of the highest quality.
B
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Suppose Campus Books, a profit-maximizing firm, is the only supplier of the textbook for a given class. The marginal cost of supplying each book is constant and equal to $10, and Campus Books has no fixed costs. The table below shows the reservation prices of the eight students enrolled in the class.StudentReservation Price($/Book)Q60R54S48T42U36V30W30X30 If Campus Books is permitted to charge 2 prices, and the bookstore knows customers with a reservation price above $30 never bother with coupons, whereas those with a reservation price of $30 or less always use them, then how many in total books will the bookstore sell?
A. 8 B. 6 C. 7 D. 5
The opportunity cost of an activity
a. depends on the individual's subjective values and opinions b. is the same for everyone c. must be calculated and known before undertaking that activity d. is irrelevant to decision making e. is not influenced by time costs
Direct controls
A. rely on the criminal justice system for enforcement. B. will be successful if a penalty is put in place. C. can easily be enforced. D. is a comparable method to emissions taxes.
The Fed uses open market operations to
A. determine the discount rate. B. determine the required reserve ratio. C. determine the federal funds rate. D. buy or sell government securities.