An efficient solution to a pricing problem
a. makes both buyers and sellers better off than any other possible solution.
b. may not be the socially "fair" solution.
c. occurs when producers' total cost of production equals consumers' total utility from the output produced.
d. maximizes the output of the good being priced.
b
You might also like to view...
Suppose a comprehensive plan applies to 2,000 low-risk people and 1,000 high-risk people opting for insurance coverage. If the average claim submitted by low-risk people is $200 while that submitted by high-risk people is $2,000 . what would be the net benefit accrued by a high-risk person paying the break even premium charged by the insurance company?
a. -$300 b. $1,800 c. $1,200 d. -$400
If the United Auto Workers union can obtain a substantial wage increase for auto workers, there will be
a. a decrease in the supply of automobiles, which is a shift to the right of the supply curve. b. a decrease in the supply of automobiles, which is a shift to the left of the supply curve. c. an increase in the supply of automobiles, which is a shift to the right of the supply curve. d. an increase in the supply of automobiles, which is a shift to the left of the supply curve.
If the U.S. government's borrowing needs increase, in the bond market this would be seen as:
A. the bond demand curve shifting right. B. the bond supply curve shifting right. C. a movement up the bond supply curve. D. the bond demand curve shifting left.
The long-run average cost curve
A) is always a downward sloping straight line. B) is a curve which is tangent to each member of a set of short-run average cost curves. C) is identical to the marginal cost curve. D) should always be horizontal.