Refer to Scenario 16.1 below to answer the question(s) that follow. SCENARIO 16.1: The marginal benefit for a particular food is described by MB = 30 - q, where q refers to the quantity of the food. The marginal cost of producing the food is described by MC = 2q. There is a negative externality associated with food production and the marginal social cost of food production is MSC = 4q.Refer to Scenario 16.1. The competitive output level is ________ and the competitive price is ________.
A. 10 units of food; $20
B. 4.29 units of food; $25.71
C. 6 units of food; $24
D. 0 units of food; $0
Answer: A
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The price elasticity of a vertical demand curve is always
A. infinitely large. B. zero. C. one. D. increasing as price increases.
U.S. corporate stock is distributed fairly equally among U.S. stockholders
Indicate whether the statement is true or false
In the long run,
a. inputs that were fixed in the short run remain fixed. b. inputs that were fixed in the short run become variable. c. inputs that were variable in the short run become fixed. d. variable inputs are rarely used.
Refer to the above figure. Suppose the current aggregate demand is represented by AD2. If aggregate demand falls to line AD3, then
A. the new equilibrium will be at j. B. a new price level will be established at a. C. the new equilibrium will be at k. D. the new equilibrium real Gross Domestic Product (GDP) will be x.