The above figure shows the marginal social benefit and marginal social cost curves of coffee in the nation of Kaffenia. Producing and consuming the efficient quantity of coffee in Kaffenia means that
A) the marginal social cost of the last pound of coffee is at the lowest possible value.
B) the marginal social benefit of the last pound of coffee is at its highest possible value.
C) to produce more coffee, the marginal social benefit of an additional pound of coffee is less than its marginal social cost.
D) All of the above are correct.
C
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President Bush lowered income taxes for individuals in 2001. Explain how lower income taxes affect the aggregate demand curve
What will be an ideal response?
You want to run a difference-in-difference experiment with a price increase for the bacon cheeseburger item on your menu. If you are worried about the "representativeness" with your control group, a poor comparison menu item would be
a. soft drink sales b. the bacon burger without cheese c. the bacon-lettuce-and-tomato sandwich d. the regular cheeseburger