Exhibit 7-1 -Refer to Exhibit 7-1. If Firm a Is Producing 5

question 119

Multiple Choice

Exhibit 7-1
-Refer to Exhibit 7-1. If Firm A is producing 5 units and Firm B is producing 3 units, then

• A)both firms should produce more because there is no way only 8 units could fulfill demand in a market.
• B)Firm A should produce more and Firm B should produce less.
• C)if Firm B reduced production by 1 unit, the savings would allow Firm A to produce 6 more units.
• D)if Firm A reduced production by 1 unit, the savings would allow Firm B to produce 2 more units.
• E)Pareto efficiency is achieved.

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Definitions:

Personal Identity

The concept of self that is developed over time through experiences, relationships, and internal reflection.

Amnesia

A condition characterized by the loss of memory, usually resulting from brain injury, disease, or psychiatric trauma.

Schizotypal Personality Disorder

A psychological condition defined by intense social fear, disorganized thinking, paranoia, feelings of unreality, brief psychotic episodes, and frequently atypical opinions.

Eccentric Behavior

Actions or attitudes that deviate from the conventional or accepted societal norms, often seen as unconventional or quirky.