-Refer to Figure 5-3

question 102

Multiple Choice

-Refer to Figure 5-3. At a price of $18, consumers are willing to buy 40 pounds of tiger shrimp. Is this an economically efficient quantity?

• A) No, the marginal benefit of the 40th unit exceeds the marginal cost of that 80th unit.
• B) Yes, otherwise consumers would not buy 40 units.
• C) Yes, because $18 shows what consumers are willing to pay for the product.
• D) No, the marginal cost of the 40th unit exceeds the marginal benefit of the 40th unit.

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Definitions:

Samples

Small portions or quantities intended to show what the whole is like.

Observed Characteristics

Traits or features that have been recorded or noted through observation or study.

Default

The failure to meet the legal obligations or conditions of a loan, such as not making payments on time.

Credit Policy

Refers to a set of guidelines that a company uses to determine how much credit to extend to customers.