If People Are Willing to Pay $130 for a Particular

question 6

Multiple Choice

If people are willing to pay $130 for a particular bicycle and its marginal cost is $80

• A) bicycle producers enjoy a profit of $50.
• B) bicycle production will be unprofitable.
• C) too many resources are being allocated to the production of bicycles.
• D) the social value of one more bicycle is $130.
• E) the bicycle industry is perfectly competitive.

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