Differentiate between a socially-optimal price and a fair-returns price
What will be an ideal response?
A price set at the marginal cost of production is referred to as a socially-optimal price. A price set at the average total cost of production is referred to as a fair-returns price.
Economics
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If the price of gasoline were $5, many people would stop buying gasoline while others would continue to do so. This would indicate
A) those who are buying gasoline value it at least $5 per gallon. B) those who are not buying gasoline value it more than $5 per gallon. C) only those who are extremely wealthy are buying gasoline. D) the price of gasoline needs to be regulated by the Federal Government.
Economics
The highest Herfindahl-Hirschman Index
A. is in Industry X.
B. is in Industry Y.
C. is in Industry Z.
D. cannot be determined.
Economics