The additional benefit of producing one more roast beef sandwich at a local deli is $3. The additional cost of producing one more roast beef sandwich is $3. To improve allocative efficiency O producers should produce one more roast beef sandwich because MB> MC. O producers should produce one more roast beef sandwich because MB equals MC. O producers should not produce one more roast beef sandwich because MB > MC. O producers should not produce one more roast beef sandwich because MB equals MC.

The additional benefit of producing one more roast beef sandwich at a local deli is $3. The additional cost of producing one more roast beef sandwich is $3. To improve allocative efficiency O producers should produce one more roast beef sandwich because MB> MC. O producers should produce one more roast beef sandwich because MB equals MC. O producers should not produce one more roast beef sandwich because MB > MC. O producers should not produce one more roast beef sandwich because MB equals MC.

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 16CTQ: Would you rather have efficiency or variety? That is, one opportunity cost of the variety of...

See similar textbooks

Related questions

Q: What occurs when the cost of producing a range of products is lower than the cost of producing each…

A: The process that depicts an increase in the production of services and goods in an economy during a…

Q: In the market for super-loud speakers, costs of production are described by MC = 10 + 2Q, and…

A: Marginal cost refers to the additional cost incurred when an extra unit of output is produced.…

Q: It has been mentioned that there should be a match of supply and demand in a company that produces…

Q: The graph shows the market for pesticide. The firm that produces the pesticide dumps waste into a…

A: In economics, market equilibrium is a situation in which economic forces such as supply and demand…

Q: According to PfizerLipitorMonopoly; it will benefit O Benefit managers and consumers O Pfizer only O…

A: PfizerLipitor is a medicines company. It is a monopoly firm. Now there are various market structure…

Q: Suppose an online retailer of batteries has the following pricing scheme (free shipping and no sales…

A: The consumers and producers purchase goods and services through monetary value which is referred to…

Q: Show solutions to each problem: Write your answer on yellow paper and upload it. Write legibly and…

Q: 2. A faculty member sells Gatorade at UNC Charlotte football games. He finds that if he raises his…

A: Profit-maximizing qty and price can be computed by setting MR equal to 0, which occurs at the…

Q: Law of diminishing marginal utility is especially applicable in agriculture sector. Comment.

A: The law of diminishing marginal utility states that there would be a fall in the marginal utility or…

Q: P32 $39 $42 $37 $42 4 1 First calculate Caleb's marginal costs and benefits. Caleb will stop at the…

A: Upto 5 units total benefit and cost are equal.

Question

The additional benefit of producing one more roast beef sandwich at a local deli is $3. The additional cost of producing one more
roast beef sandwich is $3. To improve allocative efficiency
O producers should produce one more roast beef sandwich because MB > MC.
O producers should produce one more roast beef sandwich because MB equals MC.
O producers should not produce one more roast beef sandwich because MB> MC.
O producers should not produce one more roast beef sandwich because MB equals MC

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1: Define allocative efficiency

VIEW

Step 2: Choose the correct option

VIEW

Solution

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

Vintage Camera T Temple MIS G is You have the following data for product X: sales revenue $14,000, allocated fixed costs $12,000, variable costs $20,000. You cannot increase the price of product X or improve the production process to increase profitability. What should you do about product X? O do nothing - unprofitable products are just one of the costs of doing business O keep the product both in the short term and in the long term O keep the product in the short term and drop it in the long term O drop the product both in the short term and in the long term O drop the product in the short term and keep it in the long term
You own a printing firm. Two of yoursenior managers provide you with advice. Thefirst manager states that your company islosing money for every unit that is printed. Tominimize losses, she advises that you reduceyour production levels. The second managerstates that if your firm sells some more units,the price will cover your increase in costs. Inorder to reduce losses, the second managerrecommends that you should increaseproduction. Explain which manager iscorrect and who is offering the correctadvice?
According to PfizerLipitorMonopoly: it will benefit O Benefit managers and consumers O Pfizer only O Pfizer and consumers O Pfizer and benefit managers.
Two ways market sometimes fail to produce optimal mix of output
fast urgent.
2. Consider a fast-food restaurant. The following table shows the maximum price that Alex and Anna will pay for two products: chicken nuggets and fries. Customer c. d. Alex Anna Maximum Price Nuggets $1.50 $2.55 Fries $1.50 $0.45 Bundle Price $3.00 $3.00 Assume that marginal cost of chicken nuggets is $1.00 and marginal cost of fries is $0.50. a. Are Alex and Anna demands negatively or positively correlated? Explain. b. Compare all four possible single-item pricing policies to find the profit-maximizing single-item pricing policy. Solve for profit if the restaurant engages in pure bundling. Assume the restaurant engages in mixed bundling and charges $3 for a bundle, $2.52 for chicken nuggets and $1.50 for fries. Show that the profit obtained under mixed bundling will be higher than under the pure bundling or single-item pricing.
The following table contains different consumers' values for three software titles: PowerPoint, Excel, and Word. Suppose there are 100 consumers of each type. It costs Microsoft $0 to produce each piece of software. Consumer Types Administrative Assistants Marketing/Sales PowerPoint Excel Word $76 $100 $200 $200 $100 $125 Accountants $25 $250 $25 A la carte pricing If Microsoft were to sell each of the software individually, what price should it set for each and what would its profits on each be? PowerPoint Excel Word Price per each %24 2$ %24 Profit on just that software Total profit on all software
QUESTION 5 Even though local newspapers are very inexpensive, people rarely buy more than one of them each day. This fact: O A. is an example O B. implies that electronic media of irrational behavior. sources are displacing print sources for many consumers C.contradicts the economic O D. implies that, for most people, the marginal benefit of reading a second newspaper is less than the marginal perspective 1S cost. QUESTION G
(A) what price will prevail in this market? (B) what quantity is produced? (C) how much profit(loss) does each firm make? (D) what happen to the price of two more identical firms enter the market?
Food prices in sports stadiums are notoriously high because there is a limit on the numberof vendors that can operate in the stadium, which is a barrier to entry. In 2017, the AtlantaFalcons, an American football team, lowered the barriers to entry by allowing more foodvendors into their stadium. If the market for food in the stadium follows our perfect marketassumptions, what might you expect happened after this change? Do not worry about theunderlying facts of each statement, only whether it makes economic sense given our model.(Select one or more.)(a) The price of food in the stadium decreased because of an increase in supply.(b) The price of food in the stadium decreased because of an increase in demand.(c) The quantity of food sold decreased because of a movement of the supply curve.(d) The quantity of food sold increased because of a movement along the demand curve.(e) Profit per vendor decreased because of lower food prices.(f) Profit per vendor increased because of greater…
The many identical residents of Whoville lovedrinking Zlurp. Each resident has the followingwillingness to pay for the tasty refreshment:First bottle $5Second bottle 4Third bottle 3Fourth bottle 2Fifth bottle 1Further bottles 0a. The cost of producing Zlurp is $1.50, and thecompetitive suppliers sell it at this price. (Thesupply curve is horizontal.) How many bottleswill each Whovillian consume? What is eachperson’s consumer surplus?b. Producing Zlurp creates pollution. Each bottle hasan external cost of $1. Taking this additional costinto account, what is total surplus per person inthe allocation you described in part (a)?c. Cindy Lou Who, one of the residents of Whoville,decides on her own to reduce her consumptionof Zlurp by one bottle. What happens to Cindy’swelfare (her consumer surplus minus the cost ofpollution she experiences)? How does Cindy’sdecision affect total surplus in Whoville?d. Mayor Grinch imposes a $1 tax on Zlurp. Whatis consumption per person now?…
Juanita and Shantala run a business that programs and tests cellular phones. Assume that Juanita and Shantala can switch between programming and testing cellular phones at a constant rate. The following table applies. Minutes Needed to Number of Cellular Phones Programmed or Tested in a 40-Hour Week Program 1 Test 1 Cellular Phones Cellular Phones Cellular Phone Cellular Phone Programmed Tested Juanita 160 1200 Shantala 10 4. 240 600 Shantala has an absolute advantage in O a. programming cellular phones and a comparative advantage in testing cellular phones. O b. testing cellular phones and a comparative advantage in programming cellular phones. O c. testing cellular phones and a comparative advantage in testing cellular phones. O d. programming cellular phones and a comparative advantage in programming cellular phones.