It Is Efficient to Increase the Output of Computers If

question 7

Multiple Choice

It is efficient to increase the output of computers if

• A)society considers the extra computers more valuable than other goods foregone to produce the computers.
• B)the opportunity cost of more computers is greater than their marginal utility.
• C)computer production can be increased only if production of other goods is decreased.
• D)the price of the computers is equal to their average cost.

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Definitions:

Elastic Demand

A situation in which the quantity demanded of a good or service is highly responsive to changes in its price.

Price Cut

A reduction in the selling price of goods or services, usually aimed at increasing demand or facing competition.

Elastic Demand

An instance where the demand for a product exhibits substantial sensitivity to adjustments in its pricing.

Price Rise

An increase in the cost of goods or services, often due to factors such as inflation, demand surges, or production costs.