The figure illustrates the market for haircuts. Curve A is the ________ curve, and curve B is the ________ curve
A) marginal social cost; marginal social benefit
B) total social cost; total social benefit
C) opportunity cost; opportunity benefit
D) marginal social benefit; marginal social cost
A
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The real rate of interest
A) is equal to the nominal rate when Y equals YN. B) is equal to the nominal rate minus the rate of inflation. C) is equal to the nominal rate plus the rate of inflation. D) is never negative.
Which of the following leads a perfectly competitive market to become allocatively efficient?
a. P = MC b. P = MR c. P = MR + MC d. P = MR - MC
In many regulated industries, marginal cost will be
A. below average cost. B. above total cost. C. above marginal fixed cost. D. below incremental cost.
In the presence of negative externalities, ________ is produced and in the presence of positive externalities, ________ is produced.
A. too much of the good; the right amount of the good B. the right amount of the good; too little of the good C. too much of the good; too little of the good D. too little of the good; too much of the good