Suppose a country produces only bikes and clothing. The country achieves an efficient allocation of resources when
A: it can't produce any more bikes unless it gives up clothing.
B: it produces equal amount of bikes and clothes.
C: the marginal social benefit of producing a bike equals the marginal social cost of producing a bike.
D: the prices charged for the goods are as low as possible.
A: it can't produce any more bikes unless it gives up clothing.
B: it produces equal amount of bikes and clothes.
C: the marginal social benefit of producing a bike equals the marginal social cost of producing a bike.
D: the prices charged for the goods are as low as possible.
举一反三
- A country produces only pencils and erasers. Pencil production is allocatively efficient if the marginal ________ of a pencil equals the marginal ________ of ________. A: cost; benefit; an eraser B: cost; cost; an eraser C: benefit; benefit; an eraser D: benefit; cost; a pencil
- To maximize profit, the monopolist produces on the ________ portion of the demand curve where ________. A: elastic; price equals marginal cost B: elastic; marginal revenue equals marginal cost C: inelastic; price equals marginal revenue D: inelastic; marginal revenue equals marginal cost
- Suppose the total cost of producing T-shirts can be represented as TC = 50 + 2q. The marginal cost of the 5th T-shirt is
- The<br/>Coase theorem states that ____. A: the<br/>level of pollution should be equal to zero to maximize social net<br/>benefit B: if<br/>property rights exist and transactions costs are low, private<br/>transactions are efficient C: the<br/>efficient level of output is where marginal external cost equals<br/>marginal external benefit D: the<br/>best way to limit pollution is by taxing producers who pollute
- When<br/>the marginal benefit and marginal cost of sodas are equal, then<br/>____. A: the<br/>production of sodas might be allocatively efficient but it is<br/>definitely production inefficient B: the<br/>allocatively inefficient amount of sodas is being produced C: more<br/>sodas should be produced to reach the allocatively efficient quantity D: the<br/>allocatively efficient amount of sodas is being produced