If there is allocative efficiency in a purely competitive market for a product, the minimum price producers are willing to accept is:
A. greater than marginal cost.
B. less than marginal benefit.
C. equal to the maximum price consumers are willing to pay.
D. equal to the amount of efficiency or deadweight losses.
Answer: C
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Someone who wants to rent an urban lot in order to grow vegetables should expect the rental cost to reflect the
A) expenses incurred in developing the lot. B) fact that land is a free gift of nature. C) property taxes paid on the lot. D) value of the lot to other people who would also like to use it.
Stock options do not eliminate the principal-agent problem entirely for each of the following reasons except which one?
A) A company's profit depends on the actions of all employees. B) A company's stock prices fluctuate for reasons not directly related to a company's profit. C) A company's stock price rarely changes. D) A company's executive does not have unlimited control over all employees and their actions.
If an economist is trying to figure out, in a certain situation, “What would happen if?”, then that economist is working in the area of
a. normative economics. b. positive economics. c. the theory of the firm. d. welfare economics.
An American farmer today feeds over ______ people.
A. 15 B. 30 C. 50 D. 100