Refer to Figure 4-6. What area represents the deadweight loss at P2?
A) G + H B) C + E C) B + C D) C + E + H
B
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For a perfectly competitive firm facing the short-run break-even price
A) it has a negative accounting profit. B) it has an economic profit of zero. C) it should shut down. D) it should expand production.
Collusion is designed to limit competition in a market
Indicate whether the statement is true or false
Which of the following is correct?
a. Workers determine the supply of labor, and firms determine the demand for labor. b. Workers determine the demand for labor, and firms determine the supply of labor. c. The labor market is a single market for all different types of workers. d. The price of the product produced by labor adjusts to balance the supply of labor and the demand for labor.
Assume for Brazil that the opportunity cost of each cashew is 100 peanuts. Which of these pairs of points could be on Brazil's production possibilities frontier?
a. (200 cashews, 30,000 peanuts) and (150 cashews, 35,000 peanuts) b. (200 cashews, 40,000 peanuts) and (150 cashews, 30,000 peanuts) c. (300 cashews, 60,000 peanut) and (200 cashews, 50,000 peanuts) d. (300 cashews, 60,000 peanuts) and (200 cashews, 80,000 peanuts)