At the quantity of 200 bushels of apples, the marginal social benefit of a bushel of apples is $100 and the marginal social cost is $50. To produce the efficient quantity of apples
A) more apples should be produced.
B) fewer apples should be produced.
C) there should be no change in the amount of apples produced.
D) More information on the willingness of consumers to purchase apples is needed to determine the efficient level of apples.
A
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In the game in Scenario 13.6, what is the Nash equilibrium?
A) The strategy pair associated with -$100, -$1. B) The strategy pair associated with $2, -$0.5. C) The strategy pair associated with $1, -$1. D) The strategy pair associated with -$0.5, -$0.5. E) There is no Nash equilibrium in pure strategies.
If the production of 2,000 cars and 500 tons of corn during a year is economically efficient for a country which produces only these two products, which of the following conclusions can be drawn?
a. It satisfies domestic demand completely. b. The production of cars can not be increased without reducing the production of corn. c. The reallocation of resources to change the production level must reduce production of both goods. d. It is possible to increase the production of both if resources can be reallocated.
If the income elasticity for a particular good is 0.8, we would expect to see that good
a. taxed more often b. consumed in wealthier countries c. on supermarket shelves d. consumed in high-income neighborhoods e. consumed in low-income communities
The change in total output obtained from using an additional unit of a variable input, holding other inputs constant is;
(a) Average Product. (b) Marginal Product. (c) Total Product. (d) Average Revenue.