Problem 1: Advertising can enhance economics efficiency when it:
a) increases brand loyalty
b) expands sales such that firms achieve substantial economies of scale
c) keeps new firm from entering profitable industries
d) is undertaken by pure competitors
Problem 2: We would expect a cartel to achieve
a) both allocative efficiency and productive efficiency
b) allocative efficiency, but not productive efficiency
c) productive efficiency, but not allocative efficiency
d) neither allocative efficiency nor productive efficiency
Problem 3: If a firm is hiring variable resources D and F in perfectly competitive input markets, it will minimize the cost of producing any level of output by employing D and F in such amounts that:
a) the price of each input equals its MP
b) MPD=MPF
c) MPD/PD=MPF/PF
d) MPD/PF=MPF/PD
Problem 4: At its profit-maximizing output, a pure nondiscriminating monopolist achieves:
a) neither "productive efficiency" nor "allocative efficiency"
b) both "productive efficiency" and "allocative efficiency"
c)"productive efficiency" but not "allocative efficiency"
d) "allocative efficiency" but not "productive efficiency"