Author: Anonymous

In the absence of externalities, which of the following is true of a competitive market in equilibrium?

Which of the following is necessary for a firm to practice price discrimination?

The figure presents a graph in the first quadrant of a coordinate plane, with the origin labeled 0. The horizontal axis is labeled Quantity of Labor, and the values L sub 0 and L sub 1 are indicated from left to right. L sub 0 lies about one third of the way along the horizontal axis. The distance from L sub 0 to L sub 1 is approximately two thirds of the distance from L sub 0 to the origin. The vertical axis is labeled Wage, and the values W sub 1, W sub 2, and W sub 3 are indicated from bottom to top. W sub 1 lies about one fourth of the way up the vertical axis. The distance from W sub 1 and W sub 2 is approximately half the distance from W sub 1 to the origin. The distance from W sub 2 to W sub 3 is about the same as the distance from W sub 1 to W sub 2. On the graph, there are three lines that are labeled S sub L, M F C, and M R P sub L. Line S sub L begins on the vertical axis, and just above the origin, and moves upward and to the right in a straight line. It passes through the coordinates L sub 0 comma W sub 1, and L sub 1 comma W sub 2. It ends to the right of L sub 1 on the horizontal axis, and just below W sub 3 on the vertical axis. Line M F C begins on the vertical axis where Line S sub L begins, and moves upward and to the right in a straight line, above Line S sub L. It passes through the coordinate L sub 0 comma W sub 3, and ends just to the left of L sub 1 on the horizontal axis, and high above W sub 3 on the vertical axis. Line M R P sub L begins on the vertical axis, and above W sub 3, and moves downward and to the right in a straight line. It intersects Line M F C at the coordinate L sub 0 comma W sub 3, and intersects Line S sub L at the coordinate L sub 1 comma W sub 2. It ends just to the left of where Line S sub L ends, and slightly above W sub 1 on the vertical axis. From the two values on the horizontal axis, a dashed vertical line emanates upward and touches the lines on the graph. From L sub 0, a dashed line moves vertically upward, crosses Line S sub L, and ends at the intersection of Line M F C and Line M R P sub L. From L sub 1, a dashed line moves vertically upward, and ends at the intersection of Line S sub L and Line M R P sub L. From the three values on the vertical axis, a dashed horizontal line emanates to the right and touches the lines on the graph. From W sub 1, a dashed line moves horizontally and to the right, crosses Line M F C, and ends at Line S sub L. From W sub 2, a dashed line moves horizontally and to the right, crosses Line M F C, and ends at the intersection of Line S sub L and Line M R P sub L. From W sub 3, a dashed line moves horizontally and to the right, and ends at the intersection of Line M F C and Line M R P sub L. On the graph, there are three points that are labeled F, G, and H. Point F is located at the coordinate L sub 0 comma W sub 3, and indicates the intersection of Line M F C and Line M R P sub L. Point G is located at the coordinate L sub 1 comma W sub 2, and indicates the intersection of Line S sub L and Line M R P sub L. Point H is located at the coordinate L sub 0 comma W sub 1, and lies on Line S sub L. Which of the following statements about the monopsonistic labor market shown in the accompanying graph is true?

A graph in the first quadrant is shown with wage rate on the vertical axis and number of workers on the horizontal axis. Two lines are plotted on the graph. One line is increasing and labeled supply, and the other line is decreasing and labeled marginal revenue product. The two lines intersect at nearly a right angle near the center of the graph. The graph above shows the marginal revenue product curve and supply curve of labor for a firm. The introduction of new management techniques dramatically increases workers productivity. Which of the following changes is most likely to occur?

The marginal revenue product of labor is the

Table: Costs and Benefits of Cleaning Up Pollution Levels of Clean Up Total Cost of Clean Up ($) Total Benefit of Clean Up ($) 0 0 0 1 7 45 2 37 80 3 92 105 4 172 125 5 272 140 The table above shows the total cost and the total benefit of cleaning up pollution in a community.Which of the following cleanup levels is socially optimal?

The figure presents the graph of three curves in the first quadrant of a coordinate plane. The horizontal axis is labeled Quantity, and the numbers 90, 100, and 110 are indicated, with vertical grid lines extending up from each. The vertical axis is labeled Price, and the values $8 through $14, in increments of $2, are indicated, with horizontal grid lines extending to the right from each. The three curves are labeled S equals M S C, D equals M P B, and D prime equals M S B. Curve S equals M S C begins below price $8, and to the right of the vertical axis, and moves upward and to the right in a straight line. It passes through the points with coordinates 90 comma $8, 100 comma $10, and 110 comma $12. It ends to the right of quantity 110, and at a price of approximately $14. Curve D equals M P B begins just above price $14, and to the right of the vertical axis, and moves downward and to the right in a straight line. It passes through the point with coordinates 90 comma $12, intersects curve S equals M S C at the point with the coordinates 100 comma $10, and passes through the point with coordinates 110 comma $8. It ends to the right of quantity 110, and below price $8. Curve D prime equals M S B begins above price $14, and just to the left of quantity 90. It moves downward and to the right in a straight line, and is parallel to curve D equals M P B. It passes through the point with coordinates 100 comma $12, and intersects curve S equals M S C at the point with the coordinates 110 comma $12. It ends to the right of quantity 110, and at a price of approximately $10. The graph above depicts the marginal private benefit (MPB) , the marginal social benefit (MSB) , and the marginal social cost (MSC) of producing a good. Which of the following correctly identifies both the problem illustrated in the graph and the remedy to the problem?

Which of the following is true for a perfectly competitive firm?

National defense is an example of a public good because

Which of the following is most likely to reduce inequality in a country’s distribution of income?