If a monopolist can increase output and profit by engaging in perfect price discrimination, allocative efficiency will

If the production of a good results in a positive externality, the government might be able to improve economic efficiency in this market by

The following questions refer to the diagram below, which shows a market’s cost and revenue curves. A graph in the first quadrant is shown with price of good X on the vertical axis and quantity of good X on the horizontal axis. Values P 1, P 2, P 3, and P 4 are labeled from bottom to top on the vertical axis, and values Q 1, Q 2, and Q 3 are labeled from left to right on the horizontal axis. A straight, increasing line labeled marginal social cost is drawn that passes through points Q 1 and P 2, Q 2 and P 3, and Q 3 and P 4. A second parallel line labeled marginal private cost is drawn below the first line and passes through points Q 2 and P1, and Q 3 and P 2. A curve labeled marginal social benefit is also drawn starting in the upper left corner of the graph that is decreasing and concave up, and passes through points Q 1 and P 4, Q 2 and P 3 where it intersects the marginal social cost curve, and Q 3 and P 2 where it intersects the marginal private cost curve. Dashed horizontal and vertical reference lines are drawn from each labeled value on the axes. Points on the curves are marked at the coordinates Q 1 and P 2, Q 1 and P 4, Q 2 and P 1, Q 2 and P 3, Q 3 and P 2, and Q 3 and P 4. The socially optimal quantity and the per-unit tax that will achieve the socially optimal quantity are which of the following?

Table: Short-run Output for a Perfectly Competitive Firm Number of Workers Total Product 1 15 2 20 3 24 4 27 5 29 The table above shows the short-run output for a perfectly competitive firm. If the price of the product is $10, what is the marginal revenue product of the third worker hired?

Which of the following situations best fits with the description of a firm in a perfectly competitive market?

If a per-unit tax is imposed on a monopolist, how will the monopolist’s marginal cost curve, output, and the price paid by consumers be affected?

Table: Firm A’s and Firm B’s Pricing Strategy Payoff Matrix Firm B’s Pricing Strategy Firm A’s Pricing Strategy High Low High $100, $100 $50, $150 Low $150, $50 $60, $60 The payoff matrix above gives the profits associated with the strategic choices of two firms in an oligopolistic industry. The first entry in each cell is the profit to Firm A and the second to Firm B. If each firm simultaneously chooses its pricing strategy without collusion, Firm A’s and Firm B’s profits would be which of the following?

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?

Assume that, for a perfectly competitive firm, marginal cost equals average variable cost at $10, marginal cost equals average total cost at $15, and marginal revenue equals marginal cost at $12. On the basis of this information, the firm should

Assume that barber shops operate in perfectly competitive product and factor markets. Which of the following will happen to working barbers if the price of haircuts decreases?