Refer to the information provided in Figure 6.2 below to answer the question(s) that follow.
Figure 6.2Refer to Figure 6.2. Assume Mr. Lingle's budget is AC. At which point does Mr. Lingle spend exactly his income?
A. A.
B. D.
C. E.
D. The answer cannot be determined with the given information.
Answer: A
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"External benefits lead to overproduction so that more than the efficient quantity is produced." Is the previous statement true or false?
What will be an ideal response?
Unlike a sole proprietorship, a corporation's shareholders
A) own the firm and directly manage it as well. B) do not own the firm but directly manage it. C) own the firm but do not directly manage it. D) do not own the firm and do not directly manage it.
Diana tutors Tiago for two hours before his economics final exam. Tiago pays Diana through a direct transfer from his bank on a payment app. Diana then uses her debit card to buy pizza for dinner from the local pizza parlor. This is an example of
a. the exchange of money facilitating production and trade b. trade between two people who each have a good or service that the other wants. c. an inefficient allocation of scarce resources. d. the creation of money through monetary policy.
Which of the following is an assumption of the Cournot model?
A. The firms behave so as to maximize their revenues. B. There is only one firm in an industry. C. Each firm takes the output of the other firm as given. D. Firms collude to fix prices and quantities.