The above figure shows the marginal social benefit and marginal social cost curves of coffee in the nation of Kaffenia. When 400 pounds of coffee are produced and consumed in Kaffenia each day, that is
A) more efficient than when 300 pounds are produced and consumed because more is always better than less.
B) inefficient because the marginal social benefit exceeds the marginal social cost.
C) inefficient because the marginal social cost of the 400th pound exceeds its marginal social benefit.
D) inefficient because the opportunity cost of producing more coffee exceeds its marginal social benefit.
C
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A flat tax which does NOT allow for deductions or credits is essentially a tax on
A) education. B) income. C) consumption. D) government expenditures.
Refer to Figure 11-18. A curve that connects points A, D, and E is called
A) a total cost line. B) an expansion path. C) an indifference line. D) an input-output curve.
The disposal and settlement of the public lands, according to Hughes and Cain (2011),
(a) went pretty much, in practice, as Jefferson had envisioned. (b) had both intended and unintended consequences. (c) occurred in an orderly and efficient manner for the most part. (d) was adequately funded and well-organized in execution.
Explain why a bank with a high debt-to-equity ratio may be more profitable than a bank with a lower ratio but would also have a higher level of risk.
What will be an ideal response?