question
What is a characteristic of an efficient allocation?
answer
When marginal cost equals marginal benefit
question
When determining efficient quantity of public goods, how can resources be used more efficiently if marginal social cost exceeds marginal social benefit?
answer
By increasing the quantity of the public good
question
Which action can the government take to increase the quantity of public goods?
answer
Increase funding for national defense
question
Congestion arising from all residents commuting at the same time
answer
negative externality
question
How can the paradox of value be resolved?
answer
By distinguishing between marginal and total utility
question
At what point has a firm in perfect competition maximized profits?
answer
When marginal costs equal marginal revenue
question
How does a firm in perfect competition maximize profits in the short run?
answer
By determining the quantity to produce where marginal cost equals marginal revenue
question
What effect do technological advantages in production have on a perfectly competitive market in the long run?
answer
Market price will decrease for consumers
question
When would it be appropriate for a monopoly to use a single price setting strategy?
answer
When the good of the company can easily be resold
question
How does a monopoly differ from a perfect competition in long-run equilibrium?
answer
A monopoly has a smaller output and a higher price
question
Which quantity do firms in monopolistic competition produce to maximize profit?
answer
The quantity at which marginal revenue equals marginal cost
question
Herb's Inc. has a large share of its market and is tempted to collude with the few firms that are in its market. What type of market is Herb's Inc. operating in?
answer
An oligopoly
question
What is the reason the players in a game theory situation do not act in their joint interest?
answer
Players are unable to communicate with each other
Order an Essay Now & Get These Features For Free:
Turnitin Report
Formatting
Title Page
Citation
Outline