If the Cost Were Greater Than the Marginal Benefit of a Good

question 67

Multiple Choice

If the cost were greater than the marginal benefit of a good:

• A) consumers could increase their utility by buying more.
• B) consumers could increase their utility by buying less.
• C) producers should increase production.
• D) social net benefit would be maximized.

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Definitions:

Depreciation

The reduction in value of an asset over time, particularly in respect of wear and tear.

Expected Return

Expected return is the anticipated value or profit generated by an investment in the future, considering the potential risks and rewards.

Market Portfolio

A theoretical portfolio comprising all assets in the market, with each asset weighted by its market capitalization, representing the entire stock market's performance.

Risk-free Rate

The rate of return on an investment with zero risk, typically based on government bonds.