In the Market for DVDs, 500,000 DVDs a Month Are

question 22

Multiple Choice

In the market for DVDs, 500,000 DVDs a month are available. The value people place on the 500,000th DVD a month is less than the marginal social cost of producing it. Resource use

• A) would be more efficient if people would buy more DVDs.
• B) is inefficient.
• C) would be more efficient if firms would produce more DVDs.
• D) is efficient.

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Definitions:

Collegial Model

A framework of governance or organization characterized by equal sharing of responsibility among colleagues.

Self-Discipline

Self-discipline is the ability to control one's feelings and overcome one's weaknesses; it refers to the capacity to pursue what one thinks is right, despite temptations to abandon it.

Internal Obligation

A personal sense of duty or responsibility that motivates individuals to act in a certain way without external pressure.

Social Planning Model

A method of intervention that emphasizes organized and collective action to address social issues and improve community well-being.