Gains from trade arise because of: specialization in consumption. marginal analysis. individual choice. specialization in production. 10. if equilibrium exists: there will be no remaining opportunities for individuals to make themselves better off. the price in that market will not fluctuate by more than 5%. all individuals must have an equal amount of income. the number of buyers will equal the number of sellers. 11. economists believe that resources should be used as efficiently as possible to: reduce inequity. maximize profits. achieve society's goals. eliminate scarcity. 12. in most cases, economic efficiency is achieved through: incentives built into a market economy. maximizing equity. reducing regulation. individuals seeking out opportunities that involve no risk.

Lavage rapide is a canadian company that owns and operates a large automatic car wash facility near montreal. the following table provides data concerning the company’s costs: fixed cost per month cost per car washed cleaning supplies $ 0.70 electricity $ 1,400 $ 0.07 maintenance $ 0.15 wages and salaries $ 4,900 $ 0.30 depreciation $ 8,300 rent $ 1,900 administrative expenses $ 1,400 $ 0.03 for example, electricity costs are $1,400 per month plus $0.07 per car washed. the company expects to wash 8,000 cars in august and to collect an average of $6.50 per car washed. the actual operating results for august appear below. lavage rapide income statement for the month ended august 31 actual cars washed 8,100 revenue $ 54,100 expenses: cleaning supplies 6,100 electricity 1,930 maintenance 1,440 wages and salaries 7,660 depreciation 8,300 rent 2,100 administrative expenses 1,540 total expense 29,070 net operating income $ 25,030 required: calculate the company's revenue and spending variances for august.