In the above figure, if five million CDs per month are produced and consumed, that is
A) better than producing and consuming four million CDs because more is always better than less.
B) more than the efficient quantity because the marginal social benefit exceeds the marginal social cost.
C) more than the efficient quantity because the marginal social cost exceeds the marginal social benefit.
D) less than the efficient quantity because the opportunity cost exceeds the marginal social benefit.
C
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When inflation occurs
A. each dollar of income will buy more output than before. B. the purchasing power of money decreases. C. the purchasing power of money increases. D. all prices are rising.
In the short run, a firm using variable labor and fixed capital inputs achieves the ________ level of output at the minimum point on its average total cost curve.
A. efficient B. only possible C. least efficient D. highest cost