If the Price of Bottled Water Is $2 and the Marginal

question 131

Multiple Choice

If the price of bottled water is $2 and the marginal cost of producing it is $2.50,

• A) bottled water is being produced in an increasing-cost industry.
• B) society will realize a net gain if more bottled water is produced.
• C) resources are being overallocated to bottled water.
• D) resources are being underallocated to all other goods.

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Definitions:

Garbage

Refuse or waste material discarded by humans, typically consisting of everyday items like food waste, paper, and plastic.

Operant Conditioning

A procedure in teaching whereby the strength of a particular behavior is manipulated via reinforcements or penalties.

Reinforcers

Reinforcers are stimuli that increase the probability of repetition of the behavior they follow.

Desired Response

The specific behavior or outcome that an individual or entity aims to elicit through a particular action or stimulus.