At the output level corresponding to the efficient quantity of a good,
a. the value of the last unit can be negative for some consumer
b. the value of the last unit to some consumer equals the minimum price some seller must receive for producing it
c. the distribution of the good is fair
d. the minimum price some consumer must pay for the last unit equals the value of the unit to some producer
e. the price is the lowest that a typical firm would ever be willing to accept
B
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When looking at this graph for the welfare effects of a price ceiling, the loss to producers created by the price ceiling is ______.
a. area d + e
b. everything below the supply curve
c. everything above the demand curve
d. area c + e
The optimal allocation of resources is such that:
a. the production of the two goods is equal. b. the marginal benefit of the good is greater than the marginal cost. c. the marginal cost of producing the good is equal to zero. d. the marginal benefit of the good equals the marginal cost.
Kate's money income is $250, the price of X is $3, and the price of Y is $2. Given these prices and income, Kate buys 60 units of X and 35 units of Y. Call this combination of X and Y bundle J. At bundle J, Kate's MRS is 3. At bundle J, if Kate increases consumption of Y by 1 unit, how many units of X must she give up in order to satisfy her budget constraint?
A. 1 B. 3 C. 2/3 D. 3/2
Many African nations have based their growth on resource extraction.
Answer the following statement true (T) or false (F)