Economies with lower taxes encourage production and increase available social surplus. One possible cost of such economies is that the gap between the rich and poor may increase.
Economies with lower tres production and available social surplus. One possible cost of such economies is that the...
41. A maximized social surplus in an economy means that ________. a. the sum of consumer and producer surpluses have the largest possible value b. there is an even distribution of income among the people in that economy c. each of the consumer surplus, and the producer surplus have their largest possible values d. it is possible to make some people better off without making any other person worse off 42. The following figure depicts a nonlinear production possibilities curve....
28 When there are external economies of scale, an increase in the size of the market will: A) not affect the number of firms, but will lower the price per unit. B) decrease the number of firms and lower the price per unit. C) decrease the number of firms and raise the price per unit. D) increase the number of firms and raise the price per unit. E) increase the number of firms and lower the price per unit. -...
1. In the case of trade based on external economies of scale, the pattern of trade is determined by relative factor abundance. determined by comparative advantage. determined by relative technological differences. determined by history and accident. 2. Dynamic returns to scale refer to average cost falls with current rate of production marginal cost falls with current production average cost falls with cumulative production over time. marginal cost fall with cumulative production over time. 3. In which of the following cases...
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Economies of scale mean that as production rises, so does the incremental cost for each item produced. A. True B. False The time it takes for a job to move through the production system, excluding any wait time, is called takt time True False Little's law defines the inventory level as being equal to the throughput rate times the flow time. A. True B. False The fact that a customer participates in services is a...
Which of the following is NOT associated with externalities? Select one: a. social costs of production do not equal private costs of production b. externalities are a type of market failure c. externalities are inevitable and there is nothing that can be done about them d. externalities may be positive or negative
1.Before there were charitable trusts in england, it was a common practice for the rich to buy all available grain in years of bad (low) harvest, and then sell it back to the poor at half price. the poor were allowed to buy as much as they wanted at this reduced price. for this question, let's assume that three things are true: the poor are the only ones who consume grain, they end up buying as much as they want...
If marginal revenue is lower than marginal cost, you would want to a. Reduce production b. Increase production c. Hold the production constant d. None of the above
40. Under the reciprocal demand theory what types of countries gain more from trade? 41. 42 Most of what we can graph in this class are static examples. But there are also dynamic gains from trade. What might two of those be as it pertains to specialization. 43. 45. When costs are increasing, with trade and specialization how is the end production result different from the constant cost case as far as its predictions. 46 47. What is the difference...
1) What is the optimal level of pesticide production? What is
the social marginal cost at the optimal level?
2) What is the total surplus at the optimal level? What is the
deadweight loss of pesticide production in an unregulated
market?
3) If the government taxes pesticide production, what is the
size of the Pigouvian Tax?
Assume that the market demand curve for pesticides is given by the following equation: Po 1000 - 2QD, and the market supply curve, which...
42. In an industry where firms experience internal scale economies, we wong-run Ousu of production will depend on: A) individual firms' fixed costs. B) the size of the labor force. C) whether the country engages in intra-industry trade. D) the size of the market. E) whether the country engages in inter-industry trade. 43. In the model of monopolistic competition, if firms have average cost curves, then opening trade will the total number of firms and the average price. A) downward...