If, in a Competitive Market, Marginal Benefit Is Less Than

question 413

Multiple Choice

If, in a competitive market, marginal benefit is less than marginal cost,

• A) the net benefit to consumers from participating in the market is less than the net benefit to producers.
• B) the government must force producers to raise prices in order to achieve economic efficiency.
• C) the quantity sold is greater than the equilibrium quantity.
• D) the quantity sold is less than the equilibrium quantity.