Assume That Society Places a Higher Value on the Last

question 39

Multiple Choice

Assume that society places a higher value on the last unit of X produced than the value of the resources used to produce that unit. With no spillovers, this information means that

• A)total cost is greater than total revenue.
• B)price is greater than marginal cost.
• C)marginal cost is greater than price.
• D)resources are being overallocated to X.

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Definitions:

Quantity Demanded

The total amount of goods or services that consumers are willing and able to purchase at a given price over a specific time period.

Demand Curve

The demand curve is a graphical representation showing the relationship between the price of a good and the quantity demanded by consumers, typically downward sloping.

Quantity Demanded

The total amount of a good or service that consumers are willing and able to purchase at a given price in a given time period.

Demand Curve

A graph showing the quantity of a good that consumers are willing and able to purchase at various prices.