In order to earn an economic profit, a firm needs to charge a price in excess of
A) accounting average cost.
B) normal average costs.
C) economic average cost.
D) long-run fixed costs.
C
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The above figure shows the marginal social benefit, marginal private cost and marginal social cost of producing steel. What is the efficient quantity of steel?
A) 0 tons B) 2 tons C) 4 tons D) 8 tons
Two South Pacific islands, Aba and Ema, have very different Gini coefficients. Aba's is 0.90 and Ema's is 0.40 . That's enough information to tell you that
a. both islands have a relatively equal income distribution because their Gini coefficients are both less than 1 b. Aba's income is growing faster than Ema's c. Ema's distribution of income is less equal than Aba's d. Ema's distribution of income is more equal than Aba's e. Aba's population is growing faster than Ema's