-In the Above Figure, If 4,000 Bicycles Are Produced Per

question 438

Multiple Choice

-In the above figure, if 4,000 bicycles are produced per month,

• A) marginal benefit is greater than marginal cost.
• B) fewer bicycles should be produced to reach the allocatively efficient level of output.
• C) the marginal cost of production is 2 bottles of soda per bicycle.
• D) Both answers A and B are correct.

---

Definitions:

Agricultural Prices

The amount of money required to purchase agricultural products, which can fluctuate based on factors like supply, demand, weather conditions, and market trends.

Supply

The total amount of a product or service available for purchase at any given price level in a given market.

Fiscal Policy

Government policies regarding taxation and spending that aim to influence economic conditions, such as growth rates, inflation, and unemployment.

GDP

Gross Domestic Product, a monetary measure of the market value of all the final goods and services produced in a specific time period within a country's borders.