When Output Is Less Than the Efficient Level

question 2

Multiple Choice

When output is less than the efficient level,

• A) consumers are willing to pay more for another unit than it costs to produce the unit.
• B) the amount consumers are willing to pay equals the cost of production.
• C) the cost of production is greater than the price consumers are willing to pay.
• D) the production costs can't be measured.
• E) the marginal cost of producing the good must be greater than the marginal benefit from the good.

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Definitions:

Conditional Sales Contract

A sales agreement that grants possession of an asset to the buyer, but withholds legal ownership until all terms have been fulfilled, typically payment in full.

Sale Itself

An actual transaction or agreement where a seller agrees to transfer ownership of goods or property to a buyer for a price.

Contingent on Approval

Depending on the granting of approval or permission by a relevant authority or party before proceeding or becoming effective.

Goods-In-Bailment Contract

A type of contract in which the purchased goods are in some kind of storage under the control of a third party, such as a warehouseman.