-In the Above Figure, If 2 Million Computers Are Produced

question 85

Multiple Choice

-In the above figure, if 2 million computers are produced per year then the ________ should be produced to achieve the allocatively efficient use of resources.

• A) marginal cost of a computer exceeds the marginal benefit of a computer, so more computers
• B) marginal cost of a computer exceeds the marginal benefit of a computer, so fewer computers
• C) marginal benefit of a computer exceeds the marginal cost of a computer, so more computers
• D) marginal benefit of a computer exceeds the marginal cost of a computer, so fewer computers

---

Definitions:

Inferior Goods

For inferior goods, demand decreases as income increases.

Demand for Potatoes

The consumers' desire and willingness to purchase potatoes at a given price.

Decrease in Income

A reduction in the amount of money received, typically referring to wages, salaries, or investment returns.

MR

Marginal Revenue, which is the additional income derived from selling one more unit of a good or service.