It Is Efficient to Produce an Additional Shirt If the

question 92

Multiple Choice

It is efficient to produce an additional shirt if the

• A)marginal social benefit from producing the shirt exceeds zero.
• B)marginal social benefit of producing the shirt equals zero.
• C)consumer surplus from the additional shirt exceeds its producer surplus.
• D)marginal social benefit from producing the shirt is greater than the marginal social cost of producing it.
• E)producer surplus from the additional shirt exceeds its consumer surplus.

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Definitions:

Partnership Liabilities

The debts and obligations for which a partnership is legally responsible, typically shared among the partners according to their agreement.

Creditors

Individuals or organizations to whom a company or person owes money for services or goods provided.

Capital Deficiency

A financial situation where a company's liabilities exceed its assets, indicating potential insolvency.