If the Marginal Benefit Received from a Good Is Greater

question 103

Multiple Choice

If the marginal benefit received from a good is greater than the marginal opportunity cost of production, then:

• A) society's well-being can be improved if production decreases.
• B) society's well-being cannot be improved by changing production.
• C) the market is producing too much of the good.
• D) the market is producing too little of the good.

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Definitions:

Postbox Rule

A principle in contract law where an offer is considered accepted the moment the acceptance is sent, rather than when it is received by the offeror.

Mail

The system of transporting documents and other small packages through an organization dedicated to this task, traditionally utilizing physical delivery but also electronic means.

Revocation

The act of withdrawing, cancelling, or annulling something previously granted, such as a contract, offer, or license.

Offer

A proposal made with the intent that, if accepted, it will become a legally binding agreement.