A Quantity Less Than the Equilibrium Quantity in a Competitive

question 102

Multiple Choice

A quantity less than the equilibrium quantity in a competitive market is inefficient because

• A) the marginal benefit of another unit is greater than its marginal cost.
• B) too much of the good is being produced.
• C) the marginal cost of another unit is greater than its marginal benefit.
• D) the marginal benefit of another unit is not equal to zero.
• E) the marginal benefit is not maximized.

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Definitions:

Performing Arts

Forms of creative expression that are performed in front of an audience, such as music, dance, and theater.

Groupthink

A psychological phenomenon that occurs within a group of people, in which the desire for harmony or conformity results in an irrational or dysfunctional decision-making outcome.

Devil's Advocate

A person who expresses a contentious opinion in order to provoke debate or test the strength of the opposing arguments.

Janis

Likely refers to Irving Janis, a psychologist best known for his theory of "groupthink," which describes the flawed decision-making process that can occur in cohesive groups.