A Production Quota Program

question 27

Multiple Choice

A production quota program

• A) Imposes limits on the price that individual firms can charge
• B) Is a way to raise prices without causing the overproduction that occurs under a price support program
• C) Places limitations on demand
• D) Is a way to lower prices without causing the overproduction that occurs under a price support program

---

Definitions:

Total Utility

The overall satisfaction or value a consumer gets from consuming a certain quantity of goods or services.

Marginal Utility

The added satisfaction a consumer gets from having one more unit of a good or service.

Demand Schedule

A table that lists the quantity of a good or service demanded by consumers at various price levels.

Marginal Utility Data

Information that quantifies the added satisfaction a consumer gains from consuming one more unit of a good or service.