If the Output of Product X Is Such That Marginal

question 141

Multiple Choice

If the output of product X is such that marginal benefit equals marginal cost,

• A) the correct amount of resources is being allocated to X's production.
• B) the value of producing X exceeds the value of producing alternative products with the available resources.
• C) there can be a net gain to society by allocating either more or less resources to producing X.
• D) resources are overallocated to the production of X.

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Definitions:

Interest

The charge for borrowing money or the return on deposited funds, typically expressed as a percentage rate over a period of time.

Simple Annual Interest Rate

The percentage of the principal amount that will be charged or earned as interest, calculated once per year without compounding.

Investment

The allocation of resources, such as capital, with the expectation of generating an income or profit.

Days

The measurement of time, specifically the period of time that constitutes a 24-hour day.