When an Athletic Shoe Company Is Producing a Level of Output

question 131

Multiple Choice

When an athletic shoe company is producing a level of output at which price is greater than MC, from society's standpoint the company is producing too

• A) Much because society is giving up more to produce additional shoes than the shoes are worth.
• B) Much because society would be willing to give up more alternative goods in order to get additional shoes.
• C) Little because society is giving up more to produce additional shoes than the shoes are worth.
• D) Little because society would be willing to give up more alternative goods in order to get additional shoes. High profits in a particular industry indicate that consumers want a different mix of output (more of that particular industry's goods).