If the allocation is efficient A) Marginal user cost = Marginal benefit B) Marginal extraction cost...
If the allocation is efficient
A) Marginal user cost = Marginal benefit
B) Marginal extraction cost = marginal benefit
C) marginal extraction cost is less than or equal to marginal benefit
D) marginal user cost = marginal benefit
Homework Answers
The allocation is efficient result into the maximum total surplus. It is happen when marginal user cost and marginal benefit both are equal.
Answer: Marginal user cost = marginal benefit.
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If the allocation is efficient
A) Marginal user cost = Marginal benefit
B) Marginal extraction cost...
Price per unit S (Marginal cost) H с B X A D (Marginal benefit) F E...
Price per unit S (Marginal cost) H с B X A D (Marginal benefit) F E Quantity (per period) The figure above shows a market failure. Based on the figure, what is true if production is at level G? Price is equal to marginal cost and greater than marginal benefit. Marginal benefit is equal to marginal cost. Marginal benefit is less than marginal cost. Marginal benefit is greater than marginal cost. QUESTION 62 с Price per unit $25 and marginal...
If, for the last unit of a resource extracted in each period, the marginal benefit equals...
If, for the last unit of a resource extracted in each period, the marginal benefit equals total marginal cost then . . . A)The allocation is efficient but may not sustainable B)The allocation is both efficient and sustainable C) The allocation is both efficient but only weakly sustainable D) The allocation may not be either sustainable or or efficient
QUESTION 22 Economic Efficiency can be attained when a. marginal cost is zero b.marginal benefit equals...
QUESTION 22 Economic Efficiency can be attained when a. marginal cost is zero b.marginal benefit equals marginal cost c. marginal benefit is greater than marginal cost d. marginal benefit is less than marginal cost QUESTION 23 Efficient markets are considered rationing devices because a. consumers value the good or service the most will be the one who get it b. of government decree c. the equality of the market allows for all to benefit d. suppliers can produce the good...
10. A company can achieve a pure benefit or economic benefit only when: a) The marginal...
10. A company can achieve a pure benefit or economic benefit only when: a) The marginal cost is equal to the marginal revenue b) The marginal cost is equal to the price. c) The average total cost is less than the average income. d) Net income is growing e) None of the above. 11. When the company is manufacturing and selling a volume of production such that the average total cost is equal to its average income, that company: a)...
The Marginal User Cost (MUC) reflects.. a.) opportunity cost caused by inter temporal scarcity of the...
The Marginal User Cost (MUC) reflects.. a.) opportunity cost caused by inter temporal scarcity of the resource (the difference between the price and the marginal extraction cost) b.) how much it costs the user to get the marginal unit of the resource c.) opportunity cost of exploration d.) present value of the willingness to pay in each of the periods e.) marginal cost of the users
_________ are public goods. If bureaucrats want to ensure the efficient quantity is produced, _______. A....
_________ are public goods. If bureaucrats want to ensure the efficient quantity is produced, _______. A. Cars; marginal cost must be equal to marginal benefit. B. Life-saving drugs; marginal social benefit must be greater than marginal cost. C. Highways; marginal social benefit must be equal to marginal social cost. D. Factories; marginal social cost must be greater than marginal cost. E. U.S. exports; marginal cost must be greater than marginal benefit.
If there is a market outcome in which the marginal benefit to consumers of the last...
If there is a market outcome in which the marginal benefit to consumers of the last unit produced is equal to its marginal cost, then A. maximum deadweight loss occurs. B. profits are maximized. C. allocative efficiency is achieved. D. costs are minimized. Also, A. deadweight loss is less than zero. B. consumer surplus equals producer surplus. C. quantity demanded is greater than quantity supplied. D. total economic surplus is maximized.
When there is negative externality in production, a. marginal social benefit exceeds marginal private benefit. b....
When there is negative externality in production, a. marginal social benefit exceeds marginal private benefit. b. marginal private benefit exceeds marginal social benefit. c. marginal social cost exceeds marginal private cost. d. marginal private cost exceeds marginal social cost.
CHAPTER 10 QUESTIONS Use the following diagram to answer the appropriate questions: Marginal Cost of Sweatshirts...
CHAPTER 10 QUESTIONS Use the following diagram to answer the appropriate questions: Marginal Cost of Sweatshirts Quantity of shirts Total cost 21. (Table: Marginal Cost of Sweatshirts) Look at the table Marginal Cost of Sweatshirts. The marginal cost of the second sweatshirt is: A. $9. B. $20. C. $11. D. $29. 22. According to the marginal decision rule, if the marginal benefit is: A. more than marginal cost, an activity should be reduced. B. equal to marginal cost, an activity...
Pick the 2 ideal answers: In a free market, efficient firms produce where (Marginal private cost/Marginal...
Pick the 2 ideal answers: In a free market, efficient firms produce where (Marginal private cost/Marginal Social Cost) equals (marginal private benefit/Marginal Social Benefit)
Price per unit S (Marginal cost) H с B X A D (Marginal benefit) F E Quantity (per period) The figure above shows a market failure. Based on the figure, what is true if production is at level G? Price is equal to marginal cost and greater than marginal benefit. Marginal benefit is equal to marginal cost. Marginal benefit is less than marginal cost. Marginal benefit is greater than marginal cost. QUESTION 62 с Price per unit $25 and marginal...
QUESTION 22 Economic Efficiency can be attained when a. marginal cost is zero b.marginal benefit equals marginal cost c. marginal benefit is greater than marginal cost d. marginal benefit is less than marginal cost QUESTION 23 Efficient markets are considered rationing devices because a. consumers value the good or service the most will be the one who get it b. of government decree c. the equality of the market allows for all to benefit d. suppliers can produce the good...
10. A company can achieve a pure benefit or economic benefit only when: a) The marginal cost is equal to the marginal revenue b) The marginal cost is equal to the price. c) The average total cost is less than the average income. d) Net income is growing e) None of the above. 11. When the company is manufacturing and selling a volume of production such that the average total cost is equal to its average income, that company: a)...
CHAPTER 10 QUESTIONS Use the following diagram to answer the appropriate questions: Marginal Cost of Sweatshirts Quantity of shirts Total cost 21. (Table: Marginal Cost of Sweatshirts) Look at the table Marginal Cost of Sweatshirts. The marginal cost of the second sweatshirt is: A. $9. B. $20. C. $11. D. $29. 22. According to the marginal decision rule, if the marginal benefit is: A. more than marginal cost, an activity should be reduced. B. equal to marginal cost, an activity...
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