A Quantity Less Than the Equilibrium Quantity in a Competitive

question 102

Multiple Choice

A quantity less than the equilibrium quantity in a competitive market is inefficient because

• A) the marginal benefit of another unit is greater than its marginal cost.
• B) too much of the good is being produced.
• C) the marginal cost of another unit is greater than its marginal benefit.
• D) the marginal benefit of another unit is not equal to zero.
• E) the marginal benefit is not maximized.

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Definitions:

Fewer Than 500

A phrase typically used to describe the size of a business, indicating it employs less than 500 people, often classifying it as a small or medium enterprise (SME).

U.S. Census Bureau

A federal agency tasked with collecting and analyzing data about the American people and economy.

Closed Businesses

Companies that have ceased operations permanently, often due to financial troubles, market competition, or other external factors.

Managing Finances

The practice of handling monetary resources efficiently, including budgeting, investing, and saving.