A firm is producing an output such that the benefit from one more unit is more than the cost of producing that additional unit. This means the firm is:
A. producing more output than allocative efficiency requires.
B. producing less output than allocative efficiency requires.
C. achieving productive efficiency.
D. producing an inefficient output, but we cannot say whether output should be increased or
decreased.
Answer: B
Economics
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Comparative advantage leads to producing at a:
A) higher opportunity cost. B) lower opportunity cost. C) higher dollar cost. D) point where costs just begin to fall.
Economics
Capital is the
a. flow of new equipment that a firm acquires over the course of a year. b. amount of increase in a firm's equipment over a year. c. amount of money that a firm has on hand at a given time. d. stock of plant, equipment, and other productive resources held by a firm.
Economics