Allocative efficiency occurs in markets when
a. goods are produced using the least amount of society's scarce resources
b. goods are produced at the lowest possible average total cost
c. goods are produced at the lowest possible marginal cost
d. the value to society of the last unit produced equals its marginal cost
e. the value to society of the last unit produced is greater than its marginal cost
D
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When an investor buys shares of stock, those stocks must be held for a specified period of time before they can be sold.
Answer the following statement true (T) or false (F)
Explain the infant industry argument
What will be an ideal response?
Short-run decisions are:
A. constrained because some inputs are fixed and others are variable. B. constrained because all inputs are fixed. C. unconstrained because all inputs are variable. D. constrained because all inputs are variable.
(Consider This) An unprofitable motel will stay open in the short run if:
A. price (average nightly room rate) exceeds average variable cost. B. marginal revenue exceeds marginal cost. C. price (average nightly room rate) exceeds average fixed cost. D. marginal revenue exceeds price.