Option is gains value by producing less X / gains value by producing more X / is producing the efficient mix of output Consider a simple competitive market system. How is the efficient mix of output determined? If Px> MCx, then society If Px< MCx, then society If Px = MCx. then society

Option is gains value by producing less X / gains value by producing more X / is producing the efficient mix of output Consider a simple competitive market system. How is the efficient mix of output determined? If Px> MCx, then society If Px< MCx, then society If Px = MCx. then society

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter10: Monopolistic Competition And Oligopoly

Section: Chapter Questions

Problem 20P: May and Raj me the only two growers who provide organically grown corn to a local grocery store....

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Melanie and Oli are competing Pacific halibut fishers. Both have been allocated ITQs that limit their catch to 1,000 tons of Pacific halibut each. Melanie's cost per ton is $36; Oli's cost per ton is $40. If the market price of Pacific halibut is $48 per ton, what is the minimum amount per ton that Melanie would have to offer Oli to convince him to sell Melanie his ITQs? Multiple Choice $6. $8. $12. $4.
When the market mechanism is allowed to operate freely, prices will determine: a. Only the mix of output to be poduced and the resources to be used in the production process.b. Only the resources to be used in the production process and for whom the output is produced.c. The mix of output to be produced, the resources to be used in the production process, and for whom the output isproduced.d. Only for whom the output is produced and the mix of output to be produced.
The competitive market equilibrium is allocatively efficient because a) At the equilibrium quantity the maximum price buyers are willing to pay which represents the value of the last unit to the buyers is equal to the minimum sellers are willing to accept which represents the opportunity cost of the last unit to the seller. b) At a quantity below equilibrium the next unit's marginal benefit is greater than marginal cost and thus producing it would add more to society's benefit than its cost and increase society's wellbeing. So increasing quantity in the direction of equilibrium will increases society's wellbeing c) At a quantity beyond equilibrium the last unit's marginal cost is greater than marginal benefit so it added more to society's cost than to its benefit and thus subtracted from society's welbeign. So decreasing quantity moving back towards equilibrium would increase society's wellbeing. d) Only at equilibrium it is not possibleto…
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May and Raj me the only two growers who provide organically grown corn to a local grocery store. They know that if they cooperated and produced less corn, they could raise the price of the com. If they work independently, they will each earn 100. If they decide to work together and both lower their output, they call each earn 150. If one person lowers output and the other does not, the person who lowers output will earn $1 and the other person will capture the entire market and will earn 200. Table 10.6 represents the choices available to Mary and Raj. What is the best choice for Raj if he is sole that Mary will cooperate? If Mary thinks Raj will cheat, what should Mary do and why? What is the prisoners dilemma result? What is the preferred choice if they could ensure cooperation? A = Work independently; B = Cooperate and Lower Output. (Each results entry lists Rajs earnings first, and Marys earnings second.)
I think the solution for part c is not right. I think the answer opportunity cost of producing wine in should be 3/12 not 12/3, So Britian has comprative advantage for producing wine. Can you check the answer again for me please?
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