An efficiency loss (or deadweight loss) declines in size when a unit of output is produced for which:
A. marginal cost exceeds marginal benefit.
B. maximum willingness to pay exceeds minimum acceptable price.
C. consumer surplus exceeds producer surplus.
D. producer surplus exceeds consumer surplus.
Answer: B
Economics
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Total variable cost is the sum of all
A) costs of the firm's fixed factors of production. B) costs associated with the production of goods. C) costs that rise as output increases. D) implicit costs.
Economics
Because the products of firms in a monopolistically competitive market are not homogeneous, the
A) demand curve for the industry is the same for the firm. B) demand curve for the firm's product is horizontal. C) demand curve for the firm's product is downward sloping. D) demand curve for the firm's product is upward sloping.
Economics