If, in a competitive market, marginal benefit is greater than marginal cost
A) the quantity sold is less than the equilibrium quantity.
B) the net benefit to consumers from participating in the market is greater than the net benefit to producers.
C) the government must force producers to lower price in order to achieve economic efficiency.
D) the quantity sold is greater than the equilibrium quantity.
A
Economics
You might also like to view...
One of the tendencies that is common among firms regulated using rate of return regulation is to
A) increase production to an inefficient level. B) inflate the costs of production. C) incur an economic loss. D) understate the costs of production. E) overstate their total revenue.
Economics
If revenue in the short run is less than variable costs, what should the firm do?
What will be an ideal response?
Economics