The output of MP3 players should be:
A. reduced if marginal benefits exceed marginal costs.
B. reduced if marginal costs exceed marginal benefits.
C. increased if marginal costs exceed marginal benefits.
D. reduced to zero if their unit costs exceed the unit costs of alternative products.
Answer: B
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If a firm enjoys producer surplus in perfectly competitive Market A of $1000 and would enjoy producer surplus in perfectly competitive Market B of $1200, the firm would consider moving to Market B if
A) fixed costs are greater than $100 in Market A. B) fixed costs are less than $200 in Market B. C) fixed costs are less than $300 but greater than $200 in Market B. D) fixed costs in Market B are less than the fixed costs in Market A plus $200.
An isocost line reveals the
A) costs of inputs needed to produce along an isoquant. B) costs of inputs needed to produce along an expansion path. C) input combinations that can be purchased with a given outlay of funds. D) output combinations that can be produced with a given outlay of funds.
Advocates of antipoverty programs believe that fighting poverty
a. can make everyone better off. b. is most successfully accomplished by charities. c. is most efficiently accomplished by the market. d. reduces the well-being of tax payers.
The largest U.S. economic downturn between 1890 and the present occurred during which of the following events?
a. The Buffalo Head Nickel Panic b. The Rich Man's Panic c. The Great Depression d. The Great Banana Crisis of 1897