If the marginal utility of apples exceeds the marginal cost of producing apples, then in a free market production of apples will ____, with the likely result that marginal utility will ____.
A. rise; fall
B. fall; rise
C. rise; rise
D. fall; fall
Answer: A
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A single-price monopoly has marginal revenue and marginal cost equal to $19 at 15 units of output where the price on the demand curve is $38. At this output, average total cost is $15. What is the total profit earned?
A) $225 B) $285 C) $345 D) $570 E) $19
Central planners
A) know more than the market. B) know less than the market knows. C) process information more efficiently than the market. D) can predetermine equilibrium prices.
Congress expects Social Security and Medicaid to fall short of revenue that will be needed to cover promised benefits in the future. On what evidence are these expectations based?
Which of the following is not true about a monopsonist in a unionized labor market? a. It can set the wage rate and hire any desired number of workers at that rate. b. It is the only buyer of labor in a market. c. It tries to extract returns to monopsony power. d. It determines the optimal employment-wage rate combination by equating the marginal revenue product of labor to the marginal cost
of labor. e. It must bargain in good faith with the union.