Assuming There Are No Externalities, If a Firm Is Producing

question 191

Multiple Choice

Assuming there are no externalities, if a firm is producing at an output level where the benefits to consumers exceed the cost to the suppliers to produce it, then price

• A) equals marginal cost.
• B) is greater than marginal cost.
• C) is less than marginal cost.
• D) is less than marginal revenue.

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Definitions:

Reserved Powers

Reserved powers refer to the authorities and rights not explicitly granted to the federal government by the Constitution, therefore reserved for the states and the people, as outlined in the Tenth Amendment of the United States Constitution.

Tenth Amendment

An amendment to the United States Constitution stating that the powers not delegated to the United States by the Constitution, nor prohibited by it to the states, are reserved to the states respectively, or to the people.

Defense of Marriage Act

A federal law enacted in 1996 that defined marriage as the union between one man and one woman, denying federal recognition of same-sex marriages until it was ruled unconstitutional in 2013.

Windsor v. United States

A landmark Supreme Court case that declared Section 3 of the Defense of Marriage Act (DOMA) unconstitutional, advancing the rights of same-sex couples.