If a shift in SRAS results from gains in productivity growth, the effect will be
a. relatively small over a few months or even a couple of years.
b. relatively large over a few months or even a couple of years.
c. relatively small over a few months but larger over a couple of years.
d. relatively large over a few months but smaller over a couple of years.
a. relatively small over a few months or even a couple of years.
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_______________is a type of cost-benefit decision making that compares the extra benefits to the extra cost of an action.
Fill in the blank(s) with the appropriate word(s).
Refer to Figure 4-7. The figure above represents the market for iced tea. Assume that this is a competitive market. At an output of 30,000 units
A) the marginal cost of iced tea is greater than the marginal benefit; therefore, output is inefficiently high. B) producers should raise the price to $3 in order to sell the quantity demanded of 30,000. C) the marginal benefit of iced tea is greater than the marginal cost; therefore, output is inefficiently high. D) the marginal benefit of iced tea is greater than the marginal cost; therefore, output is inefficiently low.