1.In 1984, British prime minister Margaret Thatcher decided to shut down so called uneconomic coal mines owned by the government. The National Union of Mineworkers protested , asserting that there was enough coal in the mines to continue current levels of production for years .Thatcher implicitly argued that her decision was economically sound because  at any practical output, for "uneconomic" mine. a) MC>AC b) for every input MPP >APP c) MC>MR d) AC >MC

1.In 1984, British prime minister Margaret Thatcher decided to shut down so called uneconomic coal mines owned by the government. The National Union of Mineworkers protested , asserting that there was enough coal in the mines to continue current levels of production for years .Thatcher implicitly argued that her decision was economically sound because  at any practical output, for "uneconomic" mine.

a) MC>AC

b) for every input MPP >APP

c) MC>MR

d) AC >MC

2.Economics can decide

a) the appropriate trade off between fairness and efficiency

b) Which pricing arrangement are fair and which are unfair .

c) whether a pricing decision will impose inefficiency costs on society.

d) all of the above.

3.In long run equilibrium , the perfectly competitive firm produce

a) where P=MC=AC

b) at the lowest point on its long run average cost curve .

c) where its long run average cost curve is tangent to its horizontal demand curve.

d) all of the above .