The figure above shows the market for coffee. If one firm owns all the coffee outlets and sells 10 million pounds of coffee a month
A) the market is efficient because the marginal social benefit from coffee exceeds its marginal social cost.
B) the market is efficient because the total social benefit from coffee exceed the total social cost.
C) there is a deadweight loss because the marginal social benefit from the last pound of coffee exceeds its marginal social cost.
D) there is a deadweight loss because the marginal social cost of the last pound of coffee exceeds its marginal social benefit.
C
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You are trying to decide if you should take a day off from work to go to a casino
In making your decision, you compare what you would sacrifice to go to the casino (lost wages for the day, potential losses at the casino, the amount of work you will have to make up, etc.) with the enjoyment you would receive from the day off (relaxation, potential winnings, etc.). The analysis you have just conducted is called A) cost-benefit analysis. B) comparative advantage analysis. C) stress analysis. D) sacrificial-wage analysis.
A fall in demand for a commodity in a perfectly competitive market will shift the long-run supply curve to the right
Indicate whether the statement is true or false