Suppose Maria can make 12 pizzas or 4 lasagnas every Saturday ...

[acc299]

Suppose Maria can make 12 pizzas or 4 lasagnas every Saturday afternoon, while Gina can make 10 pizzas or 2 lasagnas every Saturday afternoon. Which statement is true?
 
  A) Maria is the most efficient producer of both pizza and lasagna.
  B) Gina is the least efficient producer of both pizza and lasagna.
  C) It costs Maria 3 pizzas to produce 1 lasagna.
  D) It costs Gina 5 lasagnas to produce 1 pizza.
  E) All of the above are true.

Question 2

The theory that regulation seeks an efficient use of resources is called the capture theory of regulation. Is the previous statement correct or incorrect? Explain your answer.
 
  What will be an ideal response?

[mariahkathleeen]

Answer to Question 1

C

Answer to Question 2

The statement is incorrect. The capture theory is the theory that the regulated producers capture the regulators and so the regulators help the producers maximize their economic profit. The theory that regulation seeks an efficient use of resources is the social interest theory.

[acc299]

Correct answers!

[mariahkathleeen]

Great! Please up vote