Consider an Ordinary Rivalrous Good,provided in a Competitive Market

question 109

Multiple Choice

Consider an ordinary rivalrous good,provided in a competitive market.At the socially optimal level of provision of this good,the marginal

• A)cost of production of this good is zero.
• B)cost of production of the last unit of the good is equal to the consumers' marginal willingness to pay.
• C)sacrifice society needs to make to supply the last unit of the good is more than each consumer's marginal willingness to pay.
• D)cost of production of the last unit of the good is more than all consumers' combined marginal willingness to pay.
• E)cost of production of the last unit of the good is equal to all consumers' combined marginal willingness to pay.

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Definitions:

Implied Warranty

A legal concept that guarantees a product will perform as widely expected without being explicitly stated in a contract.

Warranty of Title

A guarantee by a seller to a buyer that the seller has the right to transfer ownership and no undisclosed encumbrances exist.

Patent Violation

The infringement of the exclusive rights attached to a patent, without permission from the patent holder.

Implied Warranty

A legal concept that guarantees a product will meet certain standards of quality and reliability without explicitly stating them in a contract.