When an Effective Production Quota Is Applied in the Market

question 84

Multiple Choice

When an effective production quota is applied in the market for wheat, the quantity produced ________ and the price ________. The marginal social benefit ________ marginal social cost.

• A)increases; rises; exceeds
• B)decreases; falls; is less than
• C)decreases; rises; exceeds
• D)increases; falls; is less than
• E)decreases; rises; is less than

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Definitions:

Service Company

A business that provides intangible products or services to consumers, rather than physical goods.

FOB Destination

A shipping term where the seller is responsible for the transportation costs and risks until the goods reach the buyer's specified location.

Freight Costs

Expenses associated with transporting goods from one place to another, which may include shipping, handling, and insurance fees.

Seller

An individual or entity that offers goods or services for sale to consumers or other businesses.