Refer to Figure 7-1. At the market equilibrium
A) the marginal benefit is less than the marginal cost.
B) the marginal benefit is greater than the marginal cost.
C) the marginal benefit is equal to the marginal cost.
D) the marginal benefit is zero.
B
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Angelina Jolie's economic rent from starring in a movie is equal to the difference between:
A. her final salary and what she could earn by starring in a different movie. B. her initial salary offer and her final salary, including royalties. C. her final salary and the average salary for leading actresses. D. her final salary and the least she would be willing to accept to star in the movie.
The President's statement that "to encourage economic growth, taxes should be cut"
A) would be an example of a normative statement. B) would be an example of a positive statement. C) would be an example of a microeconomic statement. D) would be a statement of mercantilist economic philosophy.
In terms of macroeconomic conditions, the 1930s were the "good old days."
a. True b. False Indicate whether the statement is true or false
In the short-run Keynesian model where the marginal propensity to consume is 0.75, to offset an expansionary gap resulting from a $1 billion increase in autonomous consumption, taxes must be:
A. decreased by $1.33 billion. B. increased by $1 billion. C. increased by $1.33 billion. D. decreased by $1 billion.