The above figure depicts the Edgeworth box for two individuals, Al and Bruce. Point c is Pareto efficient because
A) the MRS's are equal.
B) the indifference curves are tangent.
C) no mutual gains from trade exist.
D) All of the above.
D
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The market outcome in a duopoly with homogeneous products is similar to that in ________
A) a perfectly competitive market B) a monopolistically competitive market C) a monopoly D) an oligopoly with differentiated products
In the 1970s there was a long draught in California that left a large section of Southern California parched
As water prices began to soar how do you think most residents changed their consumption of water? What kinds of water consumption probably did not change and why? Make sure to use utility in your explanation.
Suppose that R. J. Reynolds raises the price of cigarettes by 10 percent. Although they have no requirement or agreement to do so, the other cigarette firms decide to raise their prices accordingly. This situation is best described as:
A. price leadership. B. a cartel. C. monopolistic competition. D. a market with kinked demand.
The Average Product of Labor is
A) the change in total product resulting from an extra unit of labor, holding other factors constant. B) the ratio of output to the number of workers used to produce that output. C) the amount of output that can be produced by a given amount of labor. D) equal to the marginal product of labor when the average product is increasing.