At Current Output,the Marginal Social Benefit from Furbys Is Greater

question 74

Multiple Choice

At current output,the marginal social benefit from Furbys is greater than marginal social cost.To achieve an efficient allocation,which of the following must occur? (1) Furby output must increase.(2) Furby output must decrease.(3) the marginal social benefit of Furbys will rise.(4) the marginal social cost of Furbys will fall.

• A)1 and 3
• B)1 and 4
• C)2 and 3
• D)2 and 4
• E)1 only

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Definitions:

Carnivore

An organism that primarily eats other animals as its main source of food.

Autotroph

Autotrophs are organisms that produce their own food from inorganic substances using light or chemical energy, forming the base of the food chain in ecosystems.

Heterotrophs

Organisms that obtain their energy by consuming other organisms, unable to synthesize their own food from inorganic sources.

Tertiary Consumer

An organism that typically eats secondary consumers, residing at or near the top of a food chain and usually a carnivore or an omnivore.