The table above represents the marginal cost and marginal benefit associated with pizza (in terms of movies). What quantity of pizza should be produced if resources are to be used efficiently?
A) 5 pizzas
B) 6 pizzas
C) 7 pizzas
D) 8 pizzas
C
You might also like to view...
Assume there is an increase in the price of electricity (which is the result of a decrease in the supply of electricity), and electricity and natural gas are substitutes
How would this affect the demand for natural gas, and what would happen to the equilibrium price and quantity of natural gas?
After a small hurricane in Florida, unemployment is low as there is a great deal of construction work and businesses run at full capacity. This suggests that
A) the economy is operating above the full-employment level and will eventually adjust back to long-run aggregate supply. B) living standards are falling as employment and economic activity are too high. C) the economy is operating below its long-run level and living standards are less than they would have been without the hurricane. D) the hurricane is beneficial since it is increasing employment and replacing less efficient capital with newer and more efficient capital.
One of the most famous cartels is OPEC.
Answer the following statement true (T) or false (F)
Which of the following occurs if government intervention forces the economy inside the production possibilities curve?
A. Income inequality. B. Market failure. C. Government failure. D. Externalities.