While producing less than the competitive output decreases social welfare, the same cannot be said about producing more than the competitive output
Indicate whether the statement is true or false
False. When more than the competitive output is produced, each unit sold cost more than it is valued at. This reduces social welfare compared to the competitive output.
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When a new generation of computers, which are faster and more powerful than the previous generation, is introduced into the resource market:
a. many firms do not change their demand for capital. b. many firms increase their demand for capital. c. many firms decrease their demand for capital. d. the quantity demanded of capital declines. e. the quantity demanded of capital increases.
Under which of the following scenarios would a park be considered a common resource?
a. Visitors to the park must pay an admittance fee, but there are always plenty of empty picnic tables. b. Visitors to the park must pay an admittance fee and frequently all of the picnic tables are in use. c. Visitors can enter the park free of charge and there are always plenty of empty picnic tables. d. Visitors can enter the park free of charge, but frequently all of the picnic tables are in use.