A Production Quota Is Set Below the Equilibrium Quantity

question 54

Multiple Choice

A production quota is set below the equilibrium quantity. At the quota quantity, marginal social benefit is ________ marginal social cost and the level of production is ________.

• A)less than; efficient
• B)greater than; efficient
• C)less than; inefficient
• D)equal to; efficient

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Definitions:

CPM Network

Critical Path Method Network, a project management tool that models tasks and their dependencies as a network to identify key deadlines and the longest stretch of dependent activities.

Predecessors

Refers to elements or tasks that must be completed before a certain task or element can begin in scheduling and project management.

Successor

An entity or individual that follows or comes after another in a specific role, position, or sequence.

Pessimistic Time

The “worst” activity time that could be expected in a PERT network.