When a society achieves production efficiency, it is
A) definitely producing at a point on its PPF.
B) perhaps producing at a point on its PPF and perhaps producing at a point inside its PPF.
C) definitely producing that combination of goods and services that society values most highly.
D) not fully employing all of its available resources to produce goods and services.
E) enjoying a free lunch.
A
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Based on the production and revenue data in the above table, what is the price of the product?
A) $100 B) $10 C) $1 D) More information is needed to determine the price of the product.
When Glaxo-Wellcome introduced AZT, an AIDS drug, it was able to enjoy high profits because:
a. the drug was highly recommended by doctors. b. of the quick response of rivals in introducing substitute drugs. c. of barriers to entry provided by patents. d. of its competitive price in the pharmaceutical industry. e. it experienced constant returns to scale in the long run.