If the Price of Bottled Water Is $2 and the Marginal

question 158

Multiple Choice

If the price of bottled water is $2 and the marginal cost of producing it is $2.5,

• A)bottled water is being produced in an increasing-cost industry.
• B)society will realize a net gain if more bottled water is produced.
• C)resources are being overallocated to bottled water.
• D)resources are being underallocated to all other goods.

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Definitions:

Extended Warranty

An additional warranty that covers the repair or replacement of items beyond the original manufacturer's warranty.

Need-satisfaction Format

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