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 236 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
YES! Correct, THANKS for helping me on my review

AmberC1996

  • Member
  • Posts: 317
Reply 3 on: Yesterday
Great answer, keep it coming :)

« previous next »
 

Did you know?

The average office desk has 400 times more bacteria on it than a toilet.

Did you know?

The first-known contraceptive was crocodile dung, used in Egypt in 2000 BC. Condoms were also reportedly used, made of animal bladders or intestines.

Did you know?

Vaccines cause herd immunity. If the majority of people in a community have been vaccinated against a disease, an unvaccinated person is less likely to get the disease since others are less likely to become sick from it and spread the disease.

Did you know?

Adult head lice are gray, about ? inch long, and often have a tiny dot on their backs. A female can lay between 50 and 150 eggs within the several weeks that she is alive. They feed on human blood.

Did you know?

More than 150,000 Americans killed by cardiovascular disease are younger than the age of 65 years.

Methods to Document Peripheral Pulses A. Stick Figure Peripheral Pulse Documentation B. Tabular Peri Methods to Document Peripheral Pulses A. Stick Figure Peripheral Pulse Documentation B. Tabular Peri
Mobilize the joints in the hand. Follow with figure-8s at the knuckles and scissoring the ... Mobilize the joints in the hand. Follow with figure-8s at the knuckles and scissoring the ...
Joint movement of the fingers. Apply scissoring at the knuckles and figure-8s to the fingers to ... Joint movement of the fingers. Apply scissoring at the knuckles and figure-8s to the fingers to ...
Write equilibrium constant expressions for the following reactions in terms of concentration: Write equilibrium constant expressions for the following reactions in terms of concentration:
Bayesian Analysis of the Genotype of II-2 in Figure A.4 Bayesian Analysis of the Genotype of II-2 in Figure A.4
The Hardy–Weinberg Equilibrium The Hardy–Weinberg Equilibrium
Video: Carpal Tunnel Syndrome

For a complete list of videos, visit our video library