In long-run competitive equilibrium, the perfectly competitive firm produces where price equals minimum average total cost
a. What is this efficiency criterion called?
b. How does it benefit consumers?
a. Productive efficiency
b. Productive efficiency means that a product is produced at the lowest possible cost. In other words, the product is produced with a minimum amount of scarce resources. Consumers benefit because society can produce more products with its scarce resources.
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Which of the following statements is correct?
i. The demand curve shows the maximum price people are willing to pay for a given quantity of the good. ii. The maximum price a consumer is willing to pay for an additional unit is the marginal benefit of that unit. iii. Value is what a consumer receives and price is what a consumer pays. A) i only B) ii only C) iii only D) i and iii E) i, ii, and iii
The Coinage Act of 1792 set the relative values of silver and gold coins at 15 to 1 . Suppose the relative values of silver and gold in the market was 14 to 1 . In this case,
a. only silver would circulate as money. b. silver would be hoarded and sold abroad. c. silver would be overvalued at the mint. d. both gold and silver would circulate as money.