If the Marginal Cost of Producing Every Quantity Decreases, All

question 424

Multiple Choice

If the marginal cost of producing every quantity decreases, all the following occur EXCEPT

• A) minimum supply price does not change.
• B) the marginal social benefit of the last unit bought changes.
• C) the consumer surplus increases.
• D) the efficient quantity increases.

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Definitions:

Financial Aid

Monetary assistance offered to individuals or organizations, often for education, which can come in the form of grants, scholarships, loans, or subsidies.

Flow Shop

A manufacturing system where production processes are arranged in a series, and each product follows the same sequence.

Precedence Diagram

A visual representation of the sequence in which work must be performed in a project, showing the order of tasks and their dependencies.