If in a Market the Last Unit of Output Was

question 39

Multiple Choice

If in a market the last unit of output was sold at a price higher than marginal cost,

• A) producers are better off producing more.
• B) consumers are better off if less of the product is sold.
• C) social welfare is not maximized.
• D) the unit increased total profit.

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Definitions:

Management Rights

The legal and practical powers that allow managers and executives to direct operations and make decisions within an organization.

Hourly Wage

Compensation paid to an employee based on the number of hours worked.

Secret Profit

Gains obtained by an individual, often an agent or fiduciary, without the knowledge or consent of the principal or beneficiary they represent.

Duty Of Loyalty

An obligation of fiduciaries to act in the best interest of the party they owe the duty to, often in contexts such as corporate governance.