From a social viewpoint, when price = marginal cost:
a. the economy as a whole would be better off if more was produced.
b. the economy as a whole would be better off if less was produced.
c. firms would be better off by producing less.
d. the economic efficiency would be attained as a whole.
e. the consumers would be better by consuming less.
d
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Define the term "property rights." Explain why the lack of well-defined and enforceable property rights is detrimental to the smooth functioning of a market system
What will be an ideal response?
Banks hold some deposits on reserve at the Fed because
A) the Fed requires every bank to hold at least $100 million on deposit at all times. B) the Fed will insure those deposits, but will not insure regular bank deposits. C) these are membership dues for being a member bank. D) these deposits meet the reserve requirements of the Fed.