Author Question: A competitive equilibrium is Pareto efficient because at the competitive equilibrium, A) prices ... (Read 44 times)

FButt

  • Hero Member
  • *****
  • Posts: 519
A competitive equilibrium is Pareto efficient because at the competitive equilibrium,
 
  A) prices have been allowed to adjust.
  B) there are no further gains from trade.
  C) the final outcome is different from the original inefficient endowment.
  D) all members of society can be made better off.

Question 2

Which of the following will cause the average fixed cost curve of making cigarettes to shift?
 
  A) a 5 million penalty charged to each cigarette maker
  B) a 1 per pack tax on cigarettes
  C) a 3 per hour wage increase
  D) an increase in the demand for cigarettes


Zebsrer

  • Sr. Member
  • ****
  • Posts: 284
Answer to Question 1

B

Answer to Question 2

A



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
 

Did you know?

There are over 65,000 known species of protozoa. About 10,000 species are parasitic.

Did you know?

Hippocrates noted that blood separates into four differently colored liquids when removed from the body and examined: a pure red liquid mixed with white liquid material with a yellow-colored froth at the top and a black substance that settles underneath; he named these the four humors (for blood, phlegm, yellow bile, and black bile).

Did you know?

Historic treatments for rheumatoid arthritis have included gold salts, acupuncture, a diet consisting of apples or rhubarb, nutmeg, nettles, bee venom, bracelets made of copper, prayer, rest, tooth extractions, fasting, honey, vitamins, insulin, snow collected on Christmas, magnets, and electric convulsion therapy.

Did you know?

In ancient Rome, many of the richer people in the population had lead-induced gout. The reason for this is unclear. Lead poisoning has also been linked to madness.

Did you know?

The ratio of hydrogen atoms to oxygen in water (H2O) is 2:1.

For a complete list of videos, visit our video library