If a market produces a level of output that exceeds the competitive equilibrium output, then
A) social welfare will be higher.
B) producer surplus will be higher.
C) marginal cost will exceed price.
D) All of the above.
C
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An increase in nominal GDP could result from an increase in
i. production. ii. prices. iii. subsidies. A) i only B) ii only C) i and ii D) i and iii E) i, ii, and iii
If additional units of a good could be produced at a constant opportunity cost, the production
possibilities frontier would be bowed outward (concave). Indicate whether the statement is true or false
A firm's total cost of production is
a. the owners' opportunity cost b. labor costs plus the cost of materials c. the payments for its inputs d. depreciation plus payments for inputs e. taxes plus depreciation plus payments for inputs
Comparative advantage occurs when: a. one nation can produce a good at a lower cost than its trading partners
b. the international trade of goods occurs within the same industry. c. a nation can produce a good at a lower opportunity cost than its trading partners. d. the different stages of producing a good happen in different geographic locations.