If There Is a Market Outcome in Which the Marginal

question 1

Multiple Choice

If there is a market outcome in which the marginal benefit to consumers of the last unit produced is equal to its marginal cost of production and consumer surplus plus producer surplus is maximized, then

• A)maximum deadweight loss occurs.
• B)economic efficiency is achieved.
• C)profits are maximized.
• D)costs are minimized.

Comprehend the definitions and scope of coverage in homeowner's and vehicle insurance policies.

Identify different types of insurance and their purposes.

Grasp the legal implications of material misrepresentation in insurance applications.

Understand the insurer's and the insured's duties under an insurance contract.

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Definitions:

Added Profit

The additional profit generated from an activity or investment beyond the usual or expected return.

Expected-Rate-of-Return-Curve

A graphical representation that shows the relationship between the expected return on investment and the level of investment risk.

Law of Diminishing Returns

A principle stating that as investment in a particular area increases, the rate of profit from that investment, after a certain point, cannot continue to increase if other variables remain at a constant.

Retained Earnings

Profits that a company keeps after dividends are paid, often used for reinvestment, paying off debt, or building reserves.