Efficient production requires that: there is a fair distribution of economic benefits. the quantity is produced that causes marginal cost to be equal to marginal benefit. each good produced goes to the person who gets the highest marginal benefit from it. production is distributed so that each good is produced at the lowest marginal cost.

This is a picture of a farmer's market. A farmer's market is a place where farmers bring their fresh produce to sell to consumers at low prices. Based on the information provided to you, name at least two scarce resources that were probably used to produce the fruits and vegetables shown in the picture. What would happen if one of those resources were no longer available? Choose which resource you want to pretend is no longer available, then provide an example as to how the business would be affected.

A supply curve shows quantities supplied at various prices. It also shows the A) marginal cost of production. B) marginal benefit of the good. C) total cost of production. D) total profit the firm earns at a given level of output.

The quantity supplied of a good isA) equal to the difference between the quantity available and the quantity desired by all consumers and producers.B) the same thing as the quantity demanded at each price.C) the amount that the producers are planning to sell at a particular price during a given time period.D) the amount the firm would sell if it faced no resource constraints.

What is the efficiency condition for public goods provision?  (i.e. When this condition holds, the amount of public goods provision is optimal.) a. The marginal benefit of each individual is equal to the marginal cost of production.   b. The sum of all individuals' marginal benefit equals the marginal cost of production

Question 4   Which of the following is NOT a characteristic of a competitive market?   Multiple Choice   At least one of the producers has significant market power.   Externalities do not exist in the market.   There is free entry into the market.   There are many buyers in the market.

Good X is produced in a competitive market using input A. Explain what would happen to the supply of good X in each of the following situations: a. The price of input A decreases. b. An excise tax of $3 is imposed on good X. c. An ad valorem tax of 7 percent is imposed on good X. d. A technological change reduces the cost of producing additional units of good X.

Match each type of good with its associated market efficiency outcome

Good X is produced in a competitive market using input A. Explain what would happen to the supply of good X in each of the following situations:a. The price of input A increases. It will increase. It will not change. It will decrease. b. An excise tax of $4 is imposed on good X. It will not change. It will decrease. It will increase. c. An ad valorem tax of 5 percent is imposed on good X. It will decrease. It will not change. It will increase. d. A technological change reduces the cost of producing additional units of good X. It will increase. It will decrease. It will not change.

Describe and explain a case in which the market does not allocate an efficient amount of resources.