When society overallocates resources to a product it means that the:
A. marginal benefit is less than the marginal cost.
B. opportunity cost of the product is decreasing.
C. investment in the product is declining.
D. marginal benefit is greater than the marginal cost.
Answer: A
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As a competitive firm hires increasing amounts of labor, the value of marginal product of labor
A) decreases. B) increases. C) remains constant. D) decreases then increases.
A contingent contract can create production inefficiency; however, many principals accept this because
A) inefficiency is inevitable. B) monitoring is costless. C) risk is reduced. D) profit will increase as a result.
Suppose the current interest rate is 5% and you pay $250 for a bond. What is the total payment that should be made to you in one year?
a. $12.50 b. $262.50 c. $237.50 d. $255.00 e. $267.50.
If car manufacturers begin using new labor-saving technology on their assembly lines, we would not expect
a. a smaller quantity of labor to be used. b. the supply of cars to increase. c. the firms' costs to fall. d. individual car manufacturers to move up and to the right along their individual supply curves.