Assuming There Are No Externalities, If a Firm Produces an Output

question 16

Multiple Choice

Assuming there are no externalities, if a firm produces an output level where the benefits to consumers ________ the cost to suppliers to produce it, then price is ________ marginal cost.

• A) are less than; greater than
• B) exceed; greater than
• C) exceed; less than
• D) equal; less than

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Definitions:

James Fennimore Cooper

An early 19th-century American writer, celebrated for his historical novels of frontier and Native American life, notably the "Leatherstocking Tales."

Western Settlement

The expansion and settlement of Americans into the western territories of the United States, particularly during the 19th century, often involving conflict with indigenous populations.

Free Africans

Refers to African individuals who were not enslaved, particularly during periods of widespread slavery.