If the Marginal Utility of a Gallon of Milk to Consumers

question 126

Multiple Choice

If the marginal utility of a gallon of milk to consumers is $2.50 and the MC of producing the gallon of milk is $1.50, then

• A)the value of the resources used up in producing one more gallon of milk would be $1 less than the money value of the additional gallon to consumers.
• B)society could be made better off by expanding the output of milk.
• C)resources are not being used most efficiently.
• D)All of the above are true.