You should specialize in the production of a good if you have

Tom and Jerry are the only members of society. The table above shows their marginal benefits from defense satellites, a public good. What is the marginal benefit to society from the third satellite?

A) $30 B) $27 C) $54 D) $6

If in the short run, at the profit maximizing level of output, the average revenue curve of a competitive firm lies above the average cost curve then:

a. the firm is incurring losses. b. the firm is just able to cover its total cost. c. the firm enjoys above-normal profits. d. the firm must shut down. e. the firm is barely able to cover its variable costs.