When price equals marginal cost
A) firms make zero profits.
B) firms make positive profits.
C) the industry is in long-run equilibrium.
D) the marginal benefits of consuming an extra unit of the good exactly equals the marginal cost to society of producing the good.
Answer: D
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In terms of economic organization, the main difference between high schools and colleges is _____
a. that most colleges are monopolies while high schools are highly competitive b. that most colleges are for-profit institutions while high schools are public nonprofits c. that more market mechanisms are used at the college level d. there are no differences in economic organization between the two
Assume that a firm's marginal revenue just barely exceeds marginal cost. Under these conditions the firm should:
a. expand output. b. contract output. c. maintain output. d. There is insufficient information to answer the question.
Combinations of goods on the production possibilities frontier
a. are unattainable without additional resources b. can be produced using currently available resources and technology c. reflect minimum normative value allocations d. will meet society's needs but not its wants e. are attainable only through international trade
Suppose sport utility vehicles get poor gas mileage compared to other available cars. If the price of gasoline increases, then one would expect:
A. the demand for sport utility vehicles to increase. B. the quantity demanded of sport utility vehicles to decrease. C. the demand for sport utility vehicles to decrease. D. the demand for gasoline to decrease.