99. Whenever MB = MC, the decisionmaker should do _______ of theactivity.
A) less
B) the same amount
C) more
D) none
100. If the marginal benefit received from a good is equal to themarginal cost of production, then:
A) society's well-being cannot be improved by changingproduction.
B) society's well-being can be improved if productiondecreases.
C) society's well-being can be improved if productionincreases.
D) the market is producing too much of the good.
101. If the marginal benefit received from a good is less than themarginal cost of production, then:
A) society's well-being can be improved if productionincreases.
B) society's well-being can be improved if productiondecreases.
C) society's well-being cannot be improved by changingproduction.
D) the market is producing too little of the good.
102. If the marginal benefit received from a good is greater thanthe marginal cost of production, then:
A) society's well-being can be improved if productionincreases.
B) society's well-being can be improved if productiondecreases.
C) society's well-being cannot be improved by changingproduction.
D) the market is producing too much of the good.
A) less
B) the same amount
C) more
D) none
100. If the marginal benefit received from a good is equal to themarginal cost of production, then:
A) society's well-being cannot be improved by changingproduction.
B) society's well-being can be improved if productiondecreases.
C) society's well-being can be improved if productionincreases.
D) the market is producing too much of the good.
101. If the marginal benefit received from a good is less than themarginal cost of production, then:
A) society's well-being can be improved if productionincreases.
B) society's well-being can be improved if productiondecreases.
C) society's well-being cannot be improved by changingproduction.
D) the market is producing too little of the good.
102. If the marginal benefit received from a good is greater thanthe marginal cost of production, then:
A) society's well-being can be improved if productionincreases.
B) society's well-being can be improved if productiondecreases.
C) society's well-being cannot be improved by changingproduction.
D) the market is producing too much of the good.
Related textbook solutions
Related questions
QUESTION 22
For a perfectly competitive firm, profit maximization (or loss minimization) occurs at the level of output at which
| Ā | a. |
MR = MC. |
| Ā | b. |
MR = AVC. |
| Ā | c. |
P = ATC. |
| Ā | d. |
MR = ATC. |
4 points
QUESTION 23
If MR > MC, then
| Ā | a. |
profits are being maximized. |
| Ā | b. |
the firm is producing too much of the good to be maximizing profits. |
| Ā | c. |
the firm can increase its profits (or minimize its losses) by increasing output. |
| Ā | d. |
the firm must be incurring losses. |
4 points
QUESTION 24
If firms are earning zero economic profits, they must be producing at an output level at which
| Ā | a. |
price minus marginal cost. |
| Ā | b. |
total revenue equals total costs, in other words, normal profits. |
| Ā | c. |
price equals average variable cost. |
| Ā | d. |
marginal revenue equals marginal cost. |
| Ā | e. |
none of the above |
4 points
QUESTION 25
In the theory of perfect competition,
| Ā | a. |
the market demand curve is horizontal. |
| Ā | b. |
the single firm faces a horizontal demand curve. |
| Ā | c. |
the single firm faces a downward-sloping demand curve. |
| Ā | d. |
the market demand curve is downward sloping. |
| Ā | e. |
b and d |
