Suppose a Market Is Currently Producing at a Point Where

question 44

Multiple Choice

Suppose a market is currently producing at a point where marginal social benefit exceeds marginal cost. For efficiency, production should:

• A) be increased.
• B) be decreased.
• C) not be changed. The current level of production is generating positive net benefits for society.
• D) be temporarily increased in order for firms to create more jobs and then decreased to the original level before cost increases set in.

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Definitions:

Desiccation

The process of extreme drying out or dehydration, which can be detrimental to living organisms as it leads to loss of moisture and can disrupt cellular and systemic functions.

Sporophyte

The diploid, spore-producing phase in the life cycle of plants that undergo alternation of generations.

Vascular Tissue

Specialized plant tissue consisting of xylem and phloem, responsible for water, nutrient transportation, and structural support.

Protected Zygote

A fertilized egg cell that is safeguarded from the external environment by physical or biochemical means.