Asked by
Amanda Little
on Nov 05, 2024
Verified
Assuming no externalities exist, if a good's price is less than its marginal cost, then the benefits consumers derive are
A) greater than the cost of resources needed to produce it and less should be produced.
B) greater than the cost of resources needed to produce it and more should be produced.
C) less than the cost of resources needed to produce it and less should be produced.
D) less than the cost of resources needed to produce it and more should be produced.
Marginal Cost
The growth in aggregate costs resulting from the manufacture of an additional product or service unit.
Externalities
Economic side effects or consequences of commercial activities that affect other parties without being reflected in the costs of the goods or services involved.
- Absorb the concept connecting marginal costs, marginal benefits, and the ideal production capacities.
Verified Answer
JQ
Learning Objectives
- Absorb the concept connecting marginal costs, marginal benefits, and the ideal production capacities.