If, in a Competitive Market, Marginal Benefit Is Less Than

question 413

Multiple Choice

If, in a competitive market, marginal benefit is less than marginal cost,

• A) the net benefit to consumers from participating in the market is less than the net benefit to producers.
• B) the government must force producers to raise prices in order to achieve economic efficiency.
• C) the quantity sold is greater than the equilibrium quantity.
• D) the quantity sold is less than the equilibrium quantity.

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Definitions:

Verbal Communication

The exchange of information or ideas through spoken words.

Nonverbal Communication

The transfer of information through non-linguistic signs, such as facial expressions, gestures, and body language, as opposed to verbal communication.

Low Context

Communication style in which messages are explicit and specific, not relying heavily on the context or non-verbal cues to convey meaning.

Statutory Law

Legally enacted; deriving authority from law.