If, in a competitive market, marginal benefit is less than marginal cost
A) the net benefit to consumers from participating in the market is less than the net benefit to producers.
B) the government must force producers to raise prices in order to achieve economic efficiency.
C) the output is greater than the equilibrium quantity.
D) the output is less than the equilibrium quantity.
Answer: C
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Refer to Variable Cost of Production. For what levels of output does the firm experience diminishing marginal returns?
The following questions refer to the following table which shows a firm's variable costs of production.
a. For all levels of output.
b. For the first, second, and third units of output.
c. Beyond the third unit of output.
d. For the fifth and all subsequent units of output.
In the Stackelberg model,
A. one firm plays a leadership role and its rivals merely react to the leader's quantity. B. each firm takes the quantities produced by its rivals as given. C. prices are higher and quantities are slightly less than we would see if the firms colluded to achieve the monopoly outcome. D. each firm takes the prices charged by its rivals as given.
Public debt is held as
A. Treasury Bills, Treasury Notes, Treasury Bonds, and U.S. Savings Bonds. B. U.S. Notes. C. bank deposits in U.S. banks. D. Federal Reserve Notes.
The role of the entrepreneur becomes much more important in the new growth theory - the endogenous growth model-than in the traditional economic growth mode because
A. Entrepreneurs supply the funds for capital accumulation int he new growth theory. B. In the traditional growth model, economic growth is caused by an increase in the labor force growth rate. C. The traditional growth theory focuses on capital accumulation but the new growth theory does not D. In the new growth theory, entrepreneurs play a key role in the development and adoption of new and sometimes untried technologies