With marginal cost pricing
A) marginal benefits are usually less than marginal cost.
B) all opportunity costs will be covered in the short run.
C) the price charged is equal to the opportunity cost to society of producing one more unit of the good.
D) there cannot be any short-run economic profit.
Answer: C
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A) a natural monopoly B) price discrimination C) rent seeking D) gouging
The utility maximizing consumption bundle for an individual can be found by locating _____
a. the individual's bliss point b. any point on an indifference curve touching the budget constraint c. the highest point on an individual's indifference curve d. the point tangent to an individual's budget constraint
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A. inflation, unemployment, and economic growth. B. the federal government. C. individual economic units, such as consumers, firms, industries, and units of government. D. the economy as a whole.
Limits on the flow of foreign exchange and financial investment across countries are called
A) currency restrictions. B) credit constraints. C) fixed exchange rates. D) capital controls.