Use the Figure Below to Answer the Following Questions

question 54

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 very efficient at this level of production of bicycles.
• E)both A and B.

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Definitions:

Rank Order

A method of ordering items or choices based on their importance, preference, or quality, often used in surveys and research.

Fair Value Zone

A range within which a stock's price is considered to reflect its true value based on financial analysis and market conditions.

Value Map

A value map is a visual tool that outlines the value proposition a company offers to its customers in comparison with its competitors.

Product's Cost

The total expenditure incurred to produce, market, and distribute a product.