For a firm to be economically efficient from society's point of view, it should produce to the point at which
A) marginal cost equals marginal revenue.
B) marginal cost equals average total cost.
C) marginal cost equals price.
D) average total cost equals price.
Answer: C
You might also like to view...
During this year, a country reports imports of $1,000 billion, exports of $1,100 billion, foreign investment in the country of $900 billion, investment abroad of $1,200 billion, net interest and net transfers of zero
What is the country's current account balance?
Suppose that: 1 ) The interest on a one-year bond today is 3%; 2 ) The interest on a one-year bond starting one year from now is expected to be 4% per year; 3 ) The interest on a one-year bond starting two years from now is expected to be 5% per
year; 4 ) The risk premium on a two-year bond is 0.5%; and 5 ) The risk premium on a three-year bond is 1.0%. Use that information to answer the following questions. a) According to the expectations theory, what is the interest rate today on a two-year bond? Show your work. b) According to the expectations theory, what is the interest rate today on a three-year bond? Show your work. c) Plot the yield curve.
New Source Performance Standards (NSPS)
a. were revoked by the Clean Air Act Amendments of 1990 b. are applicable to new and modified stationary sources c. are performance-based standards defined by the EPA d. are more lenient than emissions limits for existing sources e. none of the above
An article in The Economist reported that prices of CDs in Britain were much higher than prices in the United States or other European countries. There were only a few major companies, and a report from a Parliament committee said there was no serious price competition. The best explanation for this is that
A. the industry was a contestable market. B. there were entry barriers in production and distribution of CDs. C. firms were avoiding profit opportunities. D. there was substantial differentiation of products.