The accompanying figure shows Becky's daily production possibilities curve for dresses and skirts.
Point U is:
A. inefficient.
B. efficient.
C. unattainable.
D. attainable.
Answer: C
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Taxes on interest earned from savings are less inefficient
A. the less savings behavior responds to increases in the tax rate. B. the more savings behavior responds to increases in the interest rate. C. the less willing individuals are to substitute consumption today for consumption in the future. D. Both (a) and (b) E. Both (b) and (c) F. Both (a) and (c) G. None of the above H. All of the above
Refer to the table below. If Fresh Laundry is currently producing 2 quality units, to maximize profit, Fresh Laundry should ________ the number of quality units as the current quality marginal revenue is ________ than its marginal cost.
Fresh Laundry is a firm that produces laundry detergent. The table above summarizes Fresh Laundry's product quality marginal revenue and marginal cost at various quality levels.
A) increase; greater
B) decrease; greater
C) increase; less
D) decrease; less
If the demand decreases in a perfectly competitive market, firms will likely:
A. experience negative profits in the short run. B. experience zero profits in the long run. C. exit the market in hopes of capturing profits elsewhere. D. All of these are true.
Give a few examples of incentive compensation.
What will be an ideal response?