-In the Above Figure, When 2,000 Bicycles Are Produced Each

question 100

Multiple Choice

-In the above figure, when 2,000 bicycles are produced each month, we can see that

• A) the marginal benefit from another bicycle is greater than the marginal cost of another bicycle.
• B) more bicycles should be produced to reach the allocatively efficient level of output.
• C) the economy is very efficient at the production of bicycles because the marginal benefit exceeds the marginal cost.
• D) Both answers A and B are correct.

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