If the Output of Product X Is Such That Marginal

question 96

Multiple Choice

If the output of product X is such that marginal benefit equals marginal cost:

• A)the correct amount of resources is being allocated to X's production.
• B)the value of producing X and the value of producing alternative products with available resources is the same.
• C)there can be no net gain to society by allocating either more or less resources to producing X.
• D)all of the above are true.

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Definitions:

Monthly Unit Sales

The total number of units of a product sold by a company in a month.

Unit Sales

The quantity of products sold or services rendered to customers in a specific period.

Target Profit

The desired net income that a company aims to achieve within a specific time period.

Break-even

A financial analysis point where a company's revenue exactly matches its expenses, resulting in neither profit nor loss.