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).

---

Definitions:

Private Enterprise

Businesses or economic activities that are owned and operated by private individuals or companies, not by the state or government entities.

Public Good

A product that one individual can consume without reducing its availability to another individual and from which no one is excluded.

Foreign Aid

Financial or material support given by one country to another, typically for economic, humanitarian, or developmental purposes.

GDP

Stands for Gross Domestic Product, the total value of all goods and services produced within a country's borders in a specific time period, serving as a broad measure of economic activity.