If All Unwelcome or Harmful Activities Were Eliminated

question 9

Multiple Choice

If all unwelcome or harmful activities were eliminated,

• A)the benefits from eliminating these activities would exceed the cost of eliminating them
• B)there would be no remaining potential Pareto improvements
• C)society would be more efficient
• D)society would be less efficient
• E)the result would be Pareto efficient

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Definitions:

Marginal Cost

The additional cost resulting from the production of one more unit of a product or service.

Profit Maximizing

The procedure a business uses to ascertain the most profitable price and volume of output.

Monopolist

A single seller in a market, who has significant control over the price and supply of a specific good or service.

Marginal Cost

The increase in total cost resulting from producing one additional unit of a good or service.