In the above figure, 300,000 purses per month is
A) the efficient amount to produce because at 300,000 purses marginal social benefit equals marginal social cost.
B) the efficient amount to produce because at 300,000 purses marginal social benefit is greater than marginal social cost.
C) an inefficient amount to produce because at 300,000 purses marginal social benefit equals marginal social cost.
D) an inefficient amount to produce because producing 500,000 purses sets the marginal social benefit equal to zero.
A
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A society can occasionally produce at a point beyond its production possibilities frontier if there is an economic crisis.
Answer the following statement true (T) or false (F)
Efficiency is best understood as a relationship between
A) ends and means. B) energy created and energy destroyed. C) energy output and energy input. D) pleasure and pain.
Over half of the increase in labor productivity in India since 1993 has been due to
A) the growth rate of the capital stock. B) total factor productivity growth. C) a decrease in the population. D) successful infrastructure investment.
Suppose marginal cost is constant and equal to 50 and marginal revenue equals 100 - 10Q. A profit-maximizing monopolist will set quantity equal to:
A. 7. B. 5. C. 3. D. 10.