In order to efficiently allocate goods and services, we have to compare
A) total cost to total benefit.
B) total cost to price.
C) marginal benefit to price.
D) marginal cost to marginal benefit.
E) price to marginal cost.
D
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Depreciation is the term used when plants, equipment and housing deteriorate and wear out, thus losing their original values
Indicate whether the statement is true or false
Aggregate surplus:
A. is minimized under perfect competition. B. is the difference between consumer and producer surpluses. C. is the sum of consumer and producer surpluses. D. will never be positive in the long run.
The concept of mean reversion is defined by
a. the tendency of profits to revert to zero b. the tendency of costs to revert to zero c. the tendency of economic profits to revert to zero d. the tendency of profits to revert to negative
In output markets, the elasticity of supply tends to be
A. zero. B. positive. C. negative. D. decreasing at an increasing rate.