A Local Flower Grower Grows Products in a Plot of Land

question 99

Multiple Choice

A local flower grower grows products in a plot of land, which is exceptionally colorful and is admired by many passersby.There is no way to charge for this in the price of the flowers.We can safely conclude that

• A)the florist produces too many flowers.
• B)the florist produces too few flowers.
• C)the florist produces the right amount of flowers.
• D)society pays the socially optimal amount for the flowers.

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Definitions:

Additional Revenue

The extra or incremental income received from selling one more unit of a product or service.

Input Hired

Resources or factors of production, such as labor, raw materials, and capital, employed in the creation of goods and services.

Complements in Production

Goods that are produced together in the production process; an increase in the production of one leads to an increase in the production of the other.

Wage

The fixed regular payment, typically calculated on an hourly, daily, or piecework basis, made by an employer to an employee for their labor.