When there is overproduction of a good:
A. The marginal benefit of the good exceeds its marginal cost
B. The marginal cost of the good exceeds its marginal benefit
C. The net benefit of producing extra units if the good is positive
D. The allocative efficiency is enhanced
B. The marginal cost of the good exceeds its marginal benefit
You might also like to view...
In the long run, a decrease in the money supply will
A) decrease real Gross Domestic Product (GDP). B) increase real Gross Domestic Product (GDP). C) increase the price level. D) decrease the price level.
A linear total cost curve which passes through the origin implies that
a. average cost is constant and marginal cost is variable. b. average cost is variable and marginal cost is constant. c. average and marginal costs are constant and equal. d. need more information to answer question.
How will an unanticipated decrease in aggregate demand influence equilibrium output in the goods and services market?
a. Output will increase, and the general level of prices will fall. b. Output will increase, and the general level of prices will rise. c. Output will decrease, and the general level of prices will rise. d. Output will decrease, and the general level of prices will fall.
If a price-searcher firm can sell nine units at a price of $6, or it can sell ten units at a price of $5.75, what is the marginal revenue of the tenth unit?
a. $1 b. $3.50 c. $5.75 d. $6