econ final 3
Do all consumers in a competitive market enjoy the same amount of consumer surplus?
No, since considerable variation exists among consumers in terms of tastes and incomes.
What is the difference between accounting profit and economic profit?
Economic profit subtracts both explicit and implicit costs from total revenue, while accounting profit only subtracts explicit costs.
Is it possible for accounting profit to be positive and economic profit to be negative?
Yes, this could occur if explicit costs were modest and implicit costs were high.
Under which of the following examples is it likely that the accounting profit is positive and the economic profit is negative?
if you use a diamond mine as a tourist
Which of the following statements differentiates between a shortage and a surplus?
A shortage occurs when quantity demanded exceeds quantity supplied, whereas a surplus occurs when quantity supplied exceeds quantity demanded.
As a result, the US production possibiloittes curve would be ____________.
The Coase Theorem states that ____________.
private bargaining will result in an efficient allocation of resources.
What is the intent of a Pigouvian tax?
To induce producers of a negative externality to reduce production to the socially optimal level.
will provide the display on his or her own
_____ will vote in favor of the display.
In this case, rhinos are best categorized as ____________.
common pool resources.
econ final 3