A factory in a centrally planned economy produces 1,000 left shoes and no right shoes. No corresponding factory produces only right shoes. This outcome is an example of inefficiency in
A. output selection.
B. production planning.
C. product distribution.
D. market segmentation.
Answer: A
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Using the above figure, which of the following quantities of CDs has the largest deadweight loss?
A) 3 million CDs B) 4 million CDs C) 7 million CDs D) The deadweight losses associated with the three quantities given above are all equal.
The concept of economies of scale becomes especially relevant to international trade when it enables
a. numerous small producers to supply the entire country. b. one or two large producers to supply the entire country. c. numerous large producers to supply the entire country. d. one or two small producers to supply the entire country.
Economists tend to be concerned about entry barriers. Why are entry barriers so important?
Seventy-Three Land, Inc., sued Maxlar Partners for the balance due on a note made by the partnership. Max, a partner, asked the court to dismiss the claim against him personally because the plaintiff had not first tried to collect against the partnership. Does Max have a valid claim
1. In legal terms, Maxlar Partner and the company's partners haveSelect liability for the note. 2. If Max never signed a partnership agreement with the other Maxlar Partners, may he still be held liable for the note obligations? 3. If the court allows Seventy-Three Land to move forward in its case against Max and further finds Max responsible for the note, mucs to pay off the debt? 4. Is Max's argument valid? Yes, creditors must exhaust a partnership's assets before seeking recover against a partner personally