In the above figure, if five million CDs per month are produced and consumed, that is
A) better than producing and consuming four million CDs because more is always better than less.
B) more than the efficient quantity because the marginal social benefit exceeds the marginal social cost.
C) more than the efficient quantity because the marginal social cost exceeds the marginal social benefit.
D) less than the efficient quantity because the opportunity cost exceeds the marginal social benefit.
C
You might also like to view...
The distribution of income in the United States is skewed so that the mode level of household income is ________ the median household income and the median household income is ________ than the mean household income
A) less than; less than B) less than; greater than C) greater than; greater than D) greater than; less than
If the apartment owner can somehow see the effort of the each of the room mates and punishes with a loss of 5 to any room mate who doesn't clean, is that likely to lead to a more efficient outcome?
a. No because they would have to clean against their will b. Yes because now they would both get a utility of 3 c. No because neither of them like cleaning d. No because filth is good
If DI falls by $100 billion, and C falls by $90 billion, the slope of the consumption is
A. ?0.45. B. 0.45. C. ?0.90. D. 0.90. E. 0.50.
A competitive producer is
A. both a "price maker" and a "price taker." B. neither a "price maker" nor a "price taker." C. a "price maker." D. a "price taker."