Pig Pen Industries Is Currently Producing 5000 Tons of Paper

question 54

Multiple Choice

Pig Pen Industries is currently producing 5000 tons of paper per day. At this level of production, marginal social costs are $10 per ton while marginal social benefits are $12 per ton. We know that Pig Pen:

• A) is producing efficiently.
• B) is producing an amount less than the efficient amount.
• C) is producing an amount greater than the efficient amount.
• D) could increase net benefits for society by increasing production.

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Definitions:

Combine

The act of merging elements in various contexts, especially in algebra where terms are added or multiplied.

Combine

To join two or more items together to form a single entity or to merge separate elements into a cohesive whole.

Simplify

The process of writing an expression in a more compact or simplified form without changing its value, by performing all possible operations and reducing complexity.