In the Figure Above,the Efficient Quantity of Satellites to Produce

question 156

Multiple Choice

In the figure above,the efficient quantity of satellites to produce is

• A) 200, because this is where marginal benefit equals marginal cost.
• B) 200, because this is where the market is in equilibrium.
• C) anywhere below 200, i.e., where marginal benefit exceeds marginal cost.
• D) anywhere above 200, i.e., where marginal benefit is below marginal cost.
• E) zero, because no one is willing to pay for satellites.

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Definitions:

Unearned Revenues

Money received by a company for goods or services that have not yet been provided, classified as a liability on the balance sheet until the services or goods are delivered.

Fair Market Value

The price at which an asset would sell in the marketplace given willing, informed, and unpressured buyers and sellers.

Transfers

Movements of funds or resources from one account to another within an organization or between organizations.

Purchases Journal

A financial record keeping system that tracks all purchases of merchandise, supplies, or other assets on credit.