Prices Help Consumers Decide All of the Following,EXCEPT

question 60

Multiple Choice

Prices help consumers decide all of the following,EXCEPT:

• A) how much of a product to purchase.
• B) how much of a product to produce.
• C) how much of a product to substitute for another.
• D) whether to buy a certain product.

---

Definitions:

Marginal Revenue

Extra income gained by disposing of one additional unit of a good or service.

Marginal Cost

The expense associated with manufacturing an extra single unit of a product or service.

Quantity Sold

This refers to the total amount of a product or service that is sold within a given time period.

Perfect Competitor

An idealized market structure in which many firms sell identical products, there is free entry and exit, and all buyers and sellers are fully informed, leading to efficient outcomes.