1.
At a company's current level of production, the marginal cost is less than the marginal benefit. Based on this, which of the following is true? (1 point)
The firm is operating beyond its production possibilities curve.
The firm is operating at a loss.
To be efficient, the firm should increase production.
To be efficient, the firm should decrease production.
The firm is operating at optimal efficiency.
2.
Use the graph to answer the question that follows. (1 point) MSC Price ($) MPC pc PE PP MSB Q' OF Quantity In order to correct for the externality shown, a government should impose a per-unit O price control of PE O tax equal to pc - pp tax equal to PC - PE subsidy equal to PC - pe subsidy equal to PC - ppUse the graph to answer the queson that follows. (1 point) i L . Quantiiy In the illustrated scenario, which of the following is true about the effects of a price floor? 0 A surplus of the good will be created. 0 A shortage of the good will be created. 0 The amount of producer surplus will decrease. O The amount of consumer surplus will increase. 0 There is no change in the consumer or producer surplus. Use the production possibilities table below to answer the following question. Assume constant opportunity costs for Tommy and Gina. Pillows per Day Rugs per Day Tommy 5 10 Gina 15 15 In the above situation, why might Gina be interested in trading with Tommy? (1 point) O Since Gina can specialize in both products, there is no benefit for her to trade with Tommy. O Since Tommy has an absolute advantage in both products, it would be beneficial for Gina to trade for either product. O Since Tommy has a comparative advantage in rugs, Gina could specialize in pillows and trade pillows to Tommy for rugs. O Since Gina has an absolute advantage in both products, it would make sense for Tommy to specialize in pillows and trade with Gina for rugs. O Since Tommy has a comparative advantage in both products, it does not make sense for Gina to trade with Tommy.The glaph below represents the labor supply curve of a monopsoniso rm. {1 point} h'CL 0| 02 Q3 My (labor) What is the quantity of labor and the wage that will maximize the rm's prots? 0 Flrm's prots are maximized at quantity 2 Q1 and wage 2 W4 0 Finn's prots are maximized at quantity = Q2 and wage = W3 0 Firm's prots are maximized at quantity 2 Q2 and wage 2 W5 0 Flrm's prots are maximized at quantity 2 Q3 and wage 2 W1 0 Firm's prots are maximized at quantity 2 Q1 and wage 2 W2 Ware Limited is a monopolist. Use the graph, which represents the market graph of Ware limited, to answer the question that follows. (1 point} 3&89 Ware Limited uses perfect price discrimination to increase its prots. which gure represents me change in consumer surplus
