Mary and Martha both can make cookies and cakes of the same quality, though Mary can make more of both cookies and cakes per hour than Martha. With the bake-sale quickly approaching, they want to make as many cookies and cakes as possible. In which of the following situations will the most cookies and cakes be made?
a. Mary makes as many cookies and cakes as she can, while Martha does
nothing.
b. Martha makes as many cookies and cakes as she can, while Mary does nothing.
c. Mary and Martha both specialize in what they are better at making.
d. There is not enough information.
c
Economics
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Under the cartel model, each firm produces where
a. marginal cost equals marginal revenue. b. price equals marginal cost. c. the average cost curve is at a minimum. d. price exceeds marginal cost by the greatest amount.
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In a free market, a firm's rate of output is determined
a. where marginal social cost equals marginal social benefit b. where marginal private benefit equals marginal social benefit c. where marginal social cost equals marginal private cost d. where marginal private cost equals marginal private benefit e. by government
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