Underproduction Compared to the Efficient Amount Implies That for the Last

question 3

Multiple Choice

Underproduction compared to the efficient amount implies that for the last unit produced

• A) marginal social benefit exceeds marginal social cost.
• B) marginal social benefit equals marginal social cost.
• C) marginal social cost exceeds marginal social benefit.
• D) the deadweight loss is zero.

---

Definitions:

Volley Principle

A theory in hearing that suggests groups of auditory neurons respond to a sound by firing action potentials slightly out of phase with each other, allowing for the perception of sounds up to 5000 Hz.

Pinna

The visible part of the ear that resides outside the head, which plays a role in capturing sound waves and funneling them into the ear canal.

Earlobe

The soft, fleshy part of the lower portion of the external ear, which varies widely in shape and size across individuals.

Tympanic Membrane

A thin, cone-shaped membrane that separates the external ear from the middle ear and vibrates in response to sound waves.