Resources Are Efficiently Utilized When Production Is Such That Marginal

question 172

Multiple Choice

Resources are efficiently utilized when production is such that marginal social benefit

• A) is equal to marginal social cost.
• B) exceeds marginal social cost by as much as possible.
• C) is less than marginal social cost.
• D) None of the above because efficiency has to do with property rights and has nothing to do with marginal social benefit or marginal social cost.

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Definitions:

Reverse Split

A corporate action in which a company decreases the number of its outstanding shares to increase the share price.

Total Market Value

The aggregate valuation of a company or asset in the marketplace, based on current share price and the total number of outstanding shares.

Reasonable Level

A term often used in finance and economics to describe an equilibrium or average measure that is considered acceptable under given conditions.

Capital Budget

The planning process used by a company to determine whether its long-term investments or projects are worth pursuing.