Which of the Following Statements Is True

question 278

Multiple Choice

Which of the following statements is true?

• A) At the efficient quantity, marginal social benefit equals marginal social cost.
• B) Marginal social cost increases as the quantity produced decreases.
• C) Marginal social benefit decreases as the quantity consumed decreases.
• D) If marginal social benefit exceeds marginal social cost by as much as possible, production is efficient.

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Definitions:

Commutator

Strips or bars of metal insulated from each other and arranged around one end of an armature. They provide connection between the armature windings and the brushes. The commutator is used to ensure proper direction of current flow through the armature windings.

Alternator

An electrical generator that converts mechanical energy to electrical energy in the form of alternating current.

Converter

A device that changes the form of an electrical signal or power source, such as converting alternating current (AC) to direct current (DC).

Paul Revere's Engraving

A famous engraving by Paul Revere that depicted the 1770 Boston Massacre, which played a significant role in galvanizing public sentiment against British rule in the American colonies.