The figure above shows the market for cotton in Georgestan. The government regulates the market with a production quota set at 8 million pounds per year
With the quota in place, the amount of cotton produced in Georgestan is ________ because the marginal social cost of a pound of cotton is ________ the marginal social benefit of a pound of cotton. A) inefficient; less than
B) inefficient; greater than
C) efficient; less than
D) efficient; equal to
A
Economics
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Assume that both the goods and the labor market are perfectly competitive. If at equilibrium, the marginal cost faced by a firm is $3 and the market wage rate is $6, the marginal product of the last unit of labor hired by the firm must be:
A) 0.5 units. B) 2 units. C) 9 units. D) 18 units.
Economics
When unplanned inventory changes are positive, GDP is current at its equilibrium level
a. True b. False
Economics