When Price Exceeds Marginal Cost

question 13

Multiple Choice

When price exceeds marginal cost

• A) the market structure is perfectly competitive.
• B) resources are optimally allocated from society's point of view.
• C) too much output is being produced, resulting in losses to businesses.
• D) a 1-unit increase in output increases the social value of output by more than the social costs of production.
• E) the costs of production are greater than the demand.

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Definitions:

Numbered Units

Quantitative values assigned to items or units in order to denote quantity, order, or position.

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Large continuous areas of land on Earth, which are currently identified as seven in number, including Africa, Antarctica, Asia, Australia, Europe, North America, and South America.