In which of the following is the relationship of price (P) to marginal cost (MC) such that the gains to society as a whole from producing additional marginal units will be greater than the costs?
a. P = MC
b. P > MC
c. P > MC
d. P / MC
b. P > MC
When price is greater than marginal cost (P > MC), the gains to society as a whole from producing
additional marginal units will be greater than the costs.
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A) 0 tons per week B) 300 tons per week C) 400 tons per week D) None of the above answers is correct.
Which economic question does the decision to produce butter instead of guns answer?
a. What to produce? b. How to produce? c. For whom to produce? d. Who has a comparative advantage in gun production? e. Who has an absolute advantage in butter production?
According to the text, when management selects a price or quantity, it also selects the other. Explain why this is true
Which of the following is an example of a normative, as opposed to positive, statement?
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