It is efficient to produce an additional shirt if the
A) marginal social benefit of producing the shirt is greater than zero.
B) marginal social benefit of producing the shirt is zero.
C) marginal social benefit of producing the shirt is greater than the marginal social cost of producing it.
D) total social benefit from producing shirts is maximized.
C
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Tariffs are considered to be a popular tax in the first world countries who justify them on the basis of the revenue they generate for government spending
a. True b. False Indicate whether the statement is true or false
Answer the following questions true (T) or false (F)
1. The four-firm concentration ratio of the aircraft industry is over 80 percent. Most economists would consider this industry an oligopoly. 2. According to the textbook, the most important barrier to entry is economies of scale. 3. Because of the flaws of the concentration ratio as a measure of the extent of competition in an industry, some economists prefer another measure of competition, the Herfindahl-Hirschman Index.