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:

Rate of Return

The increase or decrease in the value of an investment during a set timeframe, represented as a percent of the investment's original price.

Equivalent Value

The worth of an item, service, or amount in terms of another, often used in comparisons or exchanges.

Compounded Semi-annually

The process where interest is added to the principal sum of an investment or loan twice a year, resulting in interest earning interest.

Third Payment

This refers to the third installment of a series of payments toward a financial obligation.