When a Market Is in Equilibrium and the Marginal Consumer

question 267

Multiple Choice

When a market is in equilibrium and the marginal consumer values a commodity at less than the social cost of producing it,then

• A)at market equilibrium the demand curve lies below the social cost curve.
• B)reducing production to a level below the equilibrium level could possibly raise total economic well-being.
• C)the equilibrium price is higher than necessary to insure maximum economic well-being.
• D)Both a and b are correct.

Is familiar with the concept of sanctions and their role in society.

Can explain and analyze subcultures within a broader societal context.

Understands the principles of opposing consumerism and can articulate a personal stance on the issue.

Knows the definition of globalization and its sociological significance.

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Definitions:

Managerial Concerns

Managerial Concerns are the issues, challenges, or responsibilities faced by managers in the course of executing their duties to achieve organizational goals.

Global Corporation

A business entity that operates in multiple countries, often with a centralized headquarters but decentralized operations.

Autonomous Units

Divisions or segments within an organization that operate independently with their own budgets and decision-making powers.

Home-Country Nationals

Individuals who are citizens of the country where a multinational company originates, as opposed to host-country nationals or third-country nationals.