The above figure shows the marginal social benefit and marginal social cost curves of coffee in the nation of Kaffenia. When marginal social benefit is equal to the marginal social cost of coffee in Kaffenia
A) three hundred pounds per day will be produced and consumed.
B) the efficient quantity of coffee is being produced and consumed.
C) any decrease in coffee consumption or production would result in a deadweight loss.
D) All of the above are correct.
D
You might also like to view...
During a recession, the unemployment rate
A) is, by definition, above 25 percent. B) is, by definition, above 10 percent. C) usually increases but not necessarily to 10 percent or 25 percent. D) remains constant. E) usually decreases.
People who consent to bear costs for the benefit of others whom they do not know personally usually do so
A) because they are concerned about the welfare of society. B) because they have been offered some benefit as an inducement. C) only when they are compelled by force. D) without calculating the costs to themselves.
Which of the following is a major argument of trade optimists?
(a) Industrial policy can increase productivity of developing country manufacturing efficiency. (b) New synthetic substitutes are constantly being discovered and improved. (c) Developing country efficiency would improve with trade liberalization. (d) All of the above.
The Chinese government has prohibited anyone in China from dealing with bitcoin exchanges
Indicate whether the statement is true or false