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Haley Burton
on Nov 05, 2024

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Assuming there are no externalities, if a firm is producing at an output level where the benefits to consumers exceed the cost to the suppliers to produce it, then price

A) equals marginal cost.
B) is greater than marginal cost.
C) is less than marginal cost.
D) is less than marginal revenue.

Marginal Revenue

The additional revenue generated from selling one more unit of a good or service.

Externalities

Economic side effects or consequences that affect uninvolved third parties; can be either positive or negative.

  • Familiarize with the dynamics between marginal costs, marginal benefits, and the attainment of optimal production levels.
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JG
JanPaul GonzalesNov 07, 2024
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