When the Marginal Cost of Producing a Bike Is Greater

question 269

Multiple Choice

When the marginal cost of producing a bike is greater than the marginal benefit of the bike,for resource use to be allocatively efficient,

• A) more bikes should be produced.
• B) fewer bikes should be produced.
• C) no more and no fewer bikes should be produced.
• D) it must be determined if the production of bikes can be increased.
• E) people must be educated to demand more bikes.

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