The above table shows the marginal benefits and costs from production of fertilizer. There are no external benefits. If the market is perfectly competitive and unregulated, at the equilibrium output, the
A) marginal private cost exceeds the marginal private benefit.
B) marginal private cost is less than the marginal private benefit.
C) marginal social cost equals the marginal private benefit.
D) marginal social cost is greater than the marginal private benefit.
D
You might also like to view...
Does an increase in the demand for Introductory Economics increase the cost to students of taking the course?
A) No, because tuition rates are not set to clear the market.
B) Not if the college refuses to hire additional people to teach the course.
C) Yes, if the course is consequently taught in a larger room, which costs more to heat.
D) Yes, insofar as students have to accept less satisfactory class schedules in order to take the course.
A competitive firm's total revenue minus its total opportunity cost equals its ________
A) marginal revenue B) economic profit C) opportunity cost D) normal profit
Which of the following is not assumed in perfect competition?
a. there are numerous sellers of a product b. all products are identical c. no advertising exists d. all firms are equally efficient in the short run
Since there are smaller fluctuations in the equilibrium prices of final goods than in the prices of intermediate goods, the producer price index is more volatile than the consumer price index
a. True b. False Indicate whether the statement is true or false