Which statement best describes the situation when marginal benefit exceeds marginal cost? A. The quantity is...

Which statement best describes the situation when marginal benefit exceeds marginal cost?

A. The quantity is below equilibrium and output should be increased.

B. The quantity is below equilibrium and output should be decreased.

C. The quantity is above equilibrium and output should be decreased.

D. The quantity is above equilibrium and output should be increased.

When the supply curve for a product is horizontal, what is the elasticity of supply?

A. greater than one, but less than infinity

B. equal to zero

C. equal to infinity

D. equal to one

To reach consumer equilibrium, which of the following consumption choices must be made?

A. The total utility per dollar spent on Good X must equal the total utility per dollar spent on Good Y.

B. The total utility of Good X must equal the total utility of Good Y.

C. The marginal utility per dollar spent on Good X must equal the marginal utility per dollar spent on Good Y.

D. The marginal utility of Good X must equal the marginal utility of Good Y.

What is the additional satisfaction that an individual gets from consuming one more unit of a product called?

A. aggregate gains

B. net gains

C. marginal utility

D. total utility

Solutions

Expert Solution

Rahul Sunny answered 1 month ago

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