The above figure shows the marginal social benefit and marginal social cost curves of coffee in the nation of Kaffenia. When marginal social benefit is equal to the marginal social cost of coffee in Kaffenia
A) three hundred pounds per day will be produced and consumed.
B) the efficient quantity of coffee is being produced and consumed.
C) any decrease in coffee consumption or production would result in a deadweight loss.
D) All of the above are correct.
D
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The use of seat belts and other automobile safety features making bicycling more hazardous can be explained by the economic concept known as
A) the principle of diminishing returns. B) the principle of voluntary exchange. C) the real-nominal principle. D) the marginal principle.
Because each firm has a relatively large share of the market, the actions of one firm do not have much effect on the decision making of other firms in an oligopolistic market
Indicate whether the statement is true or false