This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: Refer to Figure 4-3. At the equilibrium price of P1, consumers are willing to buy Q1 pounds of ... (Read 202 times)

imanialler

  • Hero Member
  • *****
  • Posts: 539
on: Jun 29, 2018
Refer to Figure 4-3. At the equilibrium price of P1, consumers are willing to buy Q1 pounds of granola. Is this an economically efficient quantity?
 
  A) Yes, because marginal cost is zero at the price of P1.
  B) No, the marginal cost of the last unit (Q1 ) exceeds the marginal benefit of the last unit.
  C) Yes, because P1 is the price where marginal benefit equals marginal cost.
  D) No, the marginal benefit of the last unit (Q1 ) exceeds the marginal cost of that last unit.

Question 2

What causes a production possibilities frontier to shift inward?
 
  What will be an ideal response?


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

dyrone

  • Sr. Member
  • ****
  • Posts: 322
Reply #1 on: Jun 29, 2018
Answer to Question 1

C

Answer to Question 2

A production possibilities curve shifts inward with economic decline, or negative growth. This occurs with a decrease in resources or a negative technology change.


imanialler

  • Member
  • Posts: 539
Reply 2 on: Jun 29, 2018
:D TYSM

carojassy25

  • Member
  • Posts: 299
Reply 3 on: Yesterday
Wow, this really help

« previous next »
 

Did you know?

In 1864, the first barbiturate (barbituric acid) was synthesized.

Did you know?

Thyroid conditions may make getting pregnant impossible.

Did you know?

People who have myopia, or nearsightedness, are not able to see objects at a distance but only up close. It occurs when the cornea is either curved too steeply, the eye is too long, or both. This condition is progressive and worsens with time. More than 100 million people in the United States are nearsighted, but only 20% of those are born with the condition. Diet, eye exercise, drug therapy, and corrective lenses can all help manage nearsightedness.

Did you know?

A serious new warning has been established for pregnant women against taking ACE inhibitors during pregnancy. In the study, the risk of major birth defects in children whose mothers took ACE inhibitors during the first trimester was nearly three times higher than in children whose mothers didn't take ACE inhibitors. Physicians can prescribe alternative medications for pregnant women who have symptoms of high blood pressure.

Did you know?

Persons who overdose with cardiac glycosides have a better chance of overall survival if they can survive the first 24 hours after the overdose.

Demonstrate the Application of Triangular, Figure-Eight, and Tubular Bandages Demonstrate the Application of Triangular, Figure-Eight, and Tubular Bandages
Figure of a Woman with a Drawing Showing Evidence of Original Painting and Outlining Design Scheme Figure of a Woman with a Drawing Showing Evidence of Original Painting and Outlining Design Scheme
EYEMA-O-BYERI (Reliquary Figure) EYEMA-O-BYERI (Reliquary Figure)
What is the value of the equilibrium constant, K, at 25°C for the reaction? What is the value of the equilibrium constant, K, at 25°C for the reaction?
The figure shows an LR circuit with a switch and a 240-volt battery. At the instant the switch ... The figure shows an LR circuit with a switch and a 240-volt battery. At the instant the switch ...
The Hardy–Weinberg Equilibrium The Hardy–Weinberg Equilibrium
Video: Miller's reaction chamber experiment Animation

For a complete list of videos, visit our video library