Fill-in-the-Blank
1. Fill in the blanks to make the following statements correct.
a. If the marginal cost of producing the last unit of a product
is the same for all firms in an industry, we can say that
the industry is efficient, but we do not know
enough to say that the industry is efficient.
b. If the marginal cost of some product is $12, and the
market price of that product is $15, then to achieve
allocative efficiency, the economy should
produce of this product and therefore
other products.
c. The market structure that leads to both productive and
allocative efficiency is.
d. A monopolistic industry may be productively efficient but
will not be allocatively efficient because.
e. The sum of consumer surplus and producer surplus is
at the competitive equilibrium.
f. At the monopolist’s profit-maximizing output there is
total surplus than at the competitive output.
Some surplus is transferred from to. The
surplus lost because some output is not produced is
called.
2. Fill in the blanks to make the following statements correct.