The Output of Digital Music Players Should Be

question 287

Multiple Choice

The output of digital music players should be

• A) reduced if marginal benefits exceed marginal costs.
• B) reduced if marginal costs exceed marginal benefits.
• C) increased if marginal costs exceed marginal benefits.
• D) reduced to zero if their unit costs exceed the unit costs of alternative products.

---

Definitions:

Technological Advance

The introduction of new technologies or the improvement of existing ones, enhancing productivity and efficiency.

Economic Expansion

A phase of the business cycle where there is an increase in economic activity, marked by rising GDP, employment, and income levels.

Loanable Funds

The total amount of funds available for borrowing in the financial market, influenced by savings and investments.

Investment Spending

Expenditures made by businesses or individuals on capital goods, which are intended to create future benefits such as increased production or revenue.