According to the 1974 Constitution of the former Yugoslavia, nobody in Yugoslavia owns resources. Being a socialist country, the constitution claimed resources were owned by "society" as a whole. According to the economic way of thinking,
A) their economic problem would be solved.
B) resources would finally be used efficiently, because the profit motive would be destroyed.
C) people would use Yugoslavia's resources wastefully because they themselves wouldn't have to pay the opportunity cost.
D) the central planners would know how to calculate the true values and costs of resource use.
C
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The level of an economic activity should be increased to the point where the ____ is zero
a. Marginal cost b. Marginal benefit c. Net marginal cost d. Net marginal benefit
Assume that a firm's marginal revenue curve intersects the rising portion of its marginal cost curve at 500 units of output. At this output level, a profit-maximizing firm's total cost of production is $1,000 . If the price of the product is $5 per unit, the total revenue earned by the firm will be:
a. $1,500. b. $250. c. $500. d. $2,500. e. $1,000.