Refer to Scenario 3 . What is the maximum potential increase in coconut production and maximum potential increase in hut production described in the previous question?
What will be an ideal response?
The maximum potential increase in production is either one more hut or 25 more coconuts.
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At a long-run equilibrium in monopolistic competition, price equals
A) average total cost. B) marginal cost but not marginal revenue. C) marginal revenue but not marginal cost. D) zero. E) marginal revenue and marginal cost.
Over the past year, productivity grew 1%, capital grew 0%, and labor grew 5%. If the elasticities of output with respect to capital and labor are 0.4 and 0.6, respectively, how much did output grow?
A) 1% B) 2% C) 3% D) 4%
The European Union antitrust law focuses on which of the following?
A) efficiency B) furthering the social interest C) fairness D) the means to monopolize a market
Which of the following would encourage consumers to economize on their use of healthcare and producers to provide it more efficiently?
a. a reduction in out-of-pocket healthcare expenditures b. government subsidies that encourage people to purchase health insurance policies with first-dollar coverage and small co-payments c. Medicare reform that at least partially substituted defined benefits (funds that could be used to pay for healthcare or the purchase of insurance) for the present cost reimbursement system d. all of the above