If the marginal cost of producing steel exceeds the marginal utility of using steel, then for economic efficiency,
A. the price of steel should fall.
B. society should produce less steel.
C. the price of goods made with steel should fall.
D. society should direct resources toward steel production and away from the production of other goods.
Answer: B
You might also like to view...
The marginal cost to the phone company of handling a long distance call is likely to be
A) higher the fewer such calls people make. B) higher the more the phone company has invested in equipment. C) substantially less than the price charged for the call. D) substantially more than the price charged for the call.
If the donut industry is perfectly competitive and is in long-run equilibrium, then the price of a donut
A) is greater than marginal cost. B) is greater than short-run average cost. C) is greater than long-run average cost. D) equals long-run average cost.
Sole Proprietorships use __________ as its Federal Tax ID number.
a. the owner's social security number b. an EIN number c. business operating license number d. none of these
Which of the following statements regarding concentration ratios is most accurate?
A) Concentration ratios always provide an accurate account of the extent of competition in an industry. B) Due to their shortcomings, concentration ratios provide no useable information as to the extent of competition in an industry. C) Due to their shortcomings, concentration ratios generally do not provide any legitimate idea of the extent of competition in an industry. D) Despite their shortcomings, concentration ratios can provide a general idea of the extent of competition in an industry.