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Title: The above figure shows the marginal social benefit and marginal social cost curves of doughnuts in ... Post by: yadwinder on Feb 26, 2018 The above figure shows the marginal social benefit and marginal social cost curves of doughnuts in the nation of Kaffenia. When the marginal social benefit of the last dozen doughnuts is equal to the marginal social cost
A) the efficient quantity is being produced and consumed. B) 200 dozen doughnuts are produced and consumed each day. C) an increase in production and consumption would increase efficiency. D) Both answers A and B are correct. Ques. 2 Demand is income elastic if A) a large percentage increase in income results in a small percentage increase in quantity demanded. B) a small percentage increase in income results in a large percentage increase in quantity demanded. C) an increase in income does not affect the quantity demanded. D) the good in question has close substitutes. Ques. 3 A firm's total cost (TC) equals the sum of its fixed cost plus its A) marginal cost. B) variable cost. C) variable cost plus its marginal cost. D) sunk cost plus its variable cost plus its marginal cost. Ques. 4 You observe that the price of a good rises and the quantity decreases. These observations can be the result of the A) demand curve shifting rightward. B) demand curve shifting leftward. C) supply curve shifting rightward. D) supply curve shifting leftward. Ques. 5 The above figure shows the market for neckties. Based on the graph, how much tax per necktie has been imposed by the government? A) 1.25 per tie B) 1.00 per tie C) 0.75 per tie D) More information is needed to determine the tax that the government has imposed. Ques. 6 Which of the following is the BEST example a public good? A) a parking space B) a car C) a stop sign D) a toll road Ques. 7 In the table above, if the wage rate is 8.00 per hour, the profit-maximizing number of workers is A) 1. B) 2. C) 4. D) 5. Ques. 8 The owner of a proprietorship might decide incorporate the firm as a corporation in order to A) be able to conduct business in more than one county. B) avoid the principal-agent problem. C) be eligible for patent protection of new products. D) gain limited liability. Ques. 9 An external cost is a cost of producing a good or service that is A) not paid by the producers. B) paid by the producers. C) paid by the government. D) paid by the consumer and the government. Title: The above figure shows the marginal social benefit and marginal social cost curves of doughnuts in ... Post by: ERCH6FJ on Feb 26, 2018 |