It Is Efficient to Produce an Additional Shirt If the

question 90

Multiple Choice

It is efficient to produce an additional shirt if the

• A) marginal social benefit of producing the shirt is greater than zero.
• B) marginal social benefit of producing the shirt is zero.
• C) marginal social benefit of producing the shirt is greater than the marginal social cost of producing it.
• D) total social benefit from producing shirts is maximized.

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Definitions:

Float Balance

The amount of money within a financial system that is briefly counted twice due to time gaps in registering a deposit or withdrawal, often seen in the banking system.

Ledger Balance

The balance of a bank account at the start of each day, including all deposits and withdrawals that have been posted to the account.

Miller-Orr Model

A model used to manage cash balances by setting upper and lower limits on cash reserves, triggering transfers to optimize interest and liquidity.

Upper Limit

The maximum level or boundary allowed or possible, often used in the context of production, spending, or other types of limits.