Assuming No Externalities Exist, If a Good's Price Is Less

question 62

Multiple Choice

Assuming no externalities exist, if a good's price is less than its marginal cost, then the benefits consumers derive are

• A) greater than the cost of resources needed to produce it and less should be produced.
• B) greater than the cost of resources needed to produce it and more should be produced.
• C) less than the cost of resources needed to produce it and less should be produced.
• D) less than the cost of resources needed to produce it and more should be produced.

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Definitions:

Immaterial Breach

A minor violation of a contract that does not result in significant harm or justify termination of the agreement by the other party.

Impossibility Of Performance

Impossibility of performance occurs when unforeseen events render it legally or physically impossible to fulfill the obligations of a contract.

Substantial Performance

Substantial performance refers to the completion of a nearly all terms of a contract or agreement, meeting the essential requirements despite minor deviations.

Paint Job

The application of paint to a surface, commonly referring to the process of painting vehicles or buildings for protective or aesthetic purposes.