The above figure shows the marginal social benefit and marginal social cost curves of coffee in the nation of Kaffenia. Which of the following would result in the quantity of coffee in Kaffenia differing from the efficient quantity?
A) The existence of a single producer and seller of coffee.
B) The existence of many producers and sellers of coffee.
C) Damage to the environment from fumes emitted by coffee beans.
D) Both answers A and C are correct.
D
Economics
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All of the following, except one, would serve to increase competition in an oligopoly. Which is the exception?
a. increased imports from foreign firms b. an increase in the minimum efficient scale c. an increase in the size of the market d. new technologies that reduce barriers to entry e. action by the U.S. Justice Department to break up large firms
Economics
Figure 10-1
?
A firm earns a profit of exactly zero at its optimal output level only if
A. P = MR. B. P = MC. C. P = AC. D. P = SRAVC.
Economics