Use the Figure Below to Answer the Following Questions

question 151

Multiple Choice

Use the figure below to answer the following questions.

Figure 2.2.1
-In Figure 2.2.1, when 4,000 bicycles are produced each month,

• A)the marginal benefit from another bicycle is greater than the marginal cost of another bicycle.
• B)more bicycles must be produced to reach the efficient level of output.
• C)fewer bicycles must be produced to reach the efficient level of output.
• D)the economy is efficient at this level of production of bicycles.
• E)both A and B.

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Definitions:

Hire

The act of giving someone a job; it involves agreeing to employ an individual under specified terms.

Marginal Product

The rise in production resulting from one more unit of input, while keeping all other inputs unchanged.

Units of Output

The quantity of goods or services produced by a business, factory, or individual within a certain timeframe.

Value

Value refers to the importance, worth, or usefulness of something, often determined by its desirability, utility, or monetary worth.