-In the Above Figure, If 4000 Bicycles Are Produced Per

question 16

Multiple Choice

-In the above figure, if 4000 bicycles are produced per month,

• A) fewer bicycles should be produced to reach the allocatively efficient level of output.
• B) the marginal cost of production is 2 bottles of soda per bicycle.
• C) marginal benefit is greater than marginal cost.
• D) Both answers A and B are correct.

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