Welfare economics is the study ofA.how the allocation of resources affects economic wel

Suppose that Chloe opens a dog grooming business in a local shopping center. Which of the following would be an example of a factor of production used by Chloe?

(i) her employees’time

(ii) brushes, combs, scissors, and clippers

(iii) shampoo, water, and flea prevention treatments

(iv) Chloe’s time spent on bookkeeping and bill paying

A.(i), (ii), and (iii) only

B.(i) and (ii) only

C.(i) only

D.(i), (ii), (iii), and (iv)

A monopolistically competitive market

A.may have too many or too few firms, and the government can intervene to achieve the optimal number of firms.

B.may have too many or too few firms, but the government can do little to rectify the situation.

C.usually has too many firms, reducing the economic profit of each firm to zero.

D.usually has too few firms, reducing the product variety for consumers.

Granting a pharmaceutical company a patent for a new medicine will lead to

(i) a product that is priced higher than it would be without the exclusive rights.

(ii) incentives for pharmaceutical companies to invest in research and development.

(iii) higher quantities of output than without the patent.

A.(ii) and (iii) only

B. (i) and (ii) only

C.(i) and (iii) only

D.(i), (ii), and (iii)

Trevor’s Tire Company produced and sold 500 tires. The average cost of production per tire was $50. Each tire sold for a price of $65. Trevor’s Tire Company’s total profits are

A.$25,000.

B.$32,500.

C.$67,500.

D.$7,500.