Question

Marginal cost and marginal benefit (bottles of pop per bicycle) 0 1 2 3 4 5 6 Bicycles (thousands per month) Figure 2.2.1 17) In Figure 2.2.1, when 2,000 bicycles are produced each month A) the marginal benefit from another bicycle is greater than the marginal cost of another bicycle. B) more bicycles must be produced to reach the efficient level of output. C) fewer bicycles must be produced to reach the efficient level of output. D) the economy is efficient at this level of production of bicycles. E) both A and B.