Economics Chapter 5Q

Economics Chapter 5Q - When the efficient quantity is...

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When the efficient quantity is produced, the SUPPLY CURVE IS THE MARGINAL SOCIAL COST CURVE IF THE ONLY PEOPLE WHO BEAR THE COST OF THE CELLPHONES ARE THE PEOPLE WHO PRODUCE THEM The market supply curve is the HORIZONTAL sum of the individual supply curves. It is formed by adding the QUANTITIES SUPPLIED BY ALL THE PRODUCERS AT EACH PRICE Deadweight loss IS THE DECREASE IN TOTAL SURPLUS THAT REUSLTS FROM AN INEFFICIENT LEVEL OF PRODUCTION The competitive market pushes the quanity produced to its efficient level is CORRECT
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Unformatted text preview: When the efficient quantity is produced in a competitive market, consumer surplus is maximized is FALSE When the efficient quantity is produced in a competitive market, the producer surplus is maximized is FALSE Competitive equilibrium occurs when demand equals supply is FALSE A COMMON RESOURCE is owned by no one buy used by everyone The TRAGEDY OF THE COMMONS leads to overproduction...
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