Refer to the information provided in Figure 2.4 below to answer the question(s) that follow.
Figure 2.4According to Figure 2.4, Point E necessarily represents
A. only motorcycles being produced.
B. overallocation of resources.
C. an impossible production point.
D. technological advancement.
Answer: A
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Recurring fixed costs may lead to only one firm producing in a Cournot oligopoly model.
Answer the following statement true (T) or false (F)
Refer to Figure 22.5 below. Suppose that the initial budget constraint AB is given by the equation G = 150 - c/5, where G is the units of public good and c is consumption. A closed- ended matching grant up to 100 units of public good is proposed. If the slope of line segment AD is -2, write the equation of the new budget constraint after a closed-ended matching grant.
A price floor that is set below the equilibrium price
A) causes suppliers to lower their prices. B) is binding. C) is non-binding. D) creates a shortage.
All of the points inside a production possibilities frontier are ____; all of the points outside the production possibilities frontier are ____.
A. efficient; inefficient B. optimal; irrational C. attainable; unattainable D. rational; zero-cost E. unattainable; efficient