For allocative efficiency to hold
A) price must equal marginal revenue of the last unit sold.
B) price must equal the marginal cost of the last unit produced.
C) the average variable cost must be minimized in production.
D) the average total cost must be minimized in production.
Answer: B
Economics
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If Y is income, E is actual expenditure, Ep is planned expenditure, and Iu is unintended inventory investment, then
A) Y = E + Iu. B) Iu = Y - E. C) Y = Ep + Iu. D) none of the above.
Economics
On the basic supply-demand graph, the point at which the demand curve and the supply curve intersect is located at
A. market price and market quantity. B. equilibrium price and equilibrium quantity. C. equilibrium demand and equilibrium supply. D. quantity demanded and quantity supplied.
Economics