An economy producing at an interior point of its production possibility frontier is ___
a. efficient, the economy is producing the highest possible quantities of all the goods
b. inefficient, because resources are not full employed.
c. efficient, because the economy is producing goods at the lowest possible cost
d. inefficient, because that combination of goods could be produced at a lower cost if more efficient technology were employed
b. inefficient, because resources are not full employed
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Refer to Figure 7.1. The benevolent social planner would want the outcome represented in the ________ box
A) upper left B) upper right C) lower left D) either A or C
Assume that price is greater than average variable cost. If a perfectly competitive firm is producing at an output where price is $114 and the marginal cost is $102, then the firm is probably producing more than its profit-maximizing quantity
Indicate whether the statement is true or false