Underallocation of Resources in an Industry Means That for the Last

question 38

Multiple Choice

underallocation of resources in an industry means that for the last unit produced,

• A)economic profit is still rising.
• B)society places a higher value on the resources required to produce the last unit than the value society places on consuming the last unit.
• C)the demand price for the last unit exceeds the marginal cost of producing the last unit.
• D)the cost of producing the last unit exceeds its value to society.
• E)long-run average cost is falling.