Every Social System Confronts Scarcity and So Must

question 102

Multiple Choice

Every social system confronts scarcity and so must

• A)produce only free goods.
• B)try to produce outside its production possibilities frontiers.
• C)economize.
• D)allocate goods by government edict.

---

Definitions:

Unregulated Pure Monopolist

A market condition where a single firm dominates the market without any regulatory oversight, controlling the price and supply of a good or service.

MR = MC

A principle in economics that indicates the profit maximizing level of production is reached when marginal revenue equals marginal cost.

Marginal Revenue

The additional income earned by selling one more unit of a product, reflecting the value of increased sales volume.

Demand

The desire of purchasers, consumers, or clients for a particular good or service combined with the ability and readiness to pay for it.