The short-run supply curve and short-run marginal cost curve for a perfectly competitive firm coincide when the market price is greater than average variable cost

Resource use is allocatively efficient when marginal benefit is

A) greater than marginal cost. B) equal to marginal cost. C) less than marginal cost. D) at its maximum value.

The value of goods added to a firm's inventory in a certain year is treated as

a. consumption, since the goods will be sold to consumers in another period. b. intermediate goods, and so is not included in that year's GDP. c. investment, since GDP aims to measure the value of the economy's production that year. d. spending on durable goods, since the goods could not be inventoried unless they were durable.