Asked by
Haley Burton
on Nov 05, 2024Verified
Assuming there are no externalities, if a firm is producing at an output level where the benefits to consumers exceed the cost to the suppliers to produce it, then price
A) equals marginal cost.
B) is greater than marginal cost.
C) is less than marginal cost.
D) is less than marginal revenue.
Marginal Revenue
The additional revenue generated from selling one more unit of a good or service.
Externalities
Economic side effects or consequences that affect uninvolved third parties; can be either positive or negative.
- Familiarize with the dynamics between marginal costs, marginal benefits, and the attainment of optimal production levels.
Verified Answer
JG
Learning Objectives
- Familiarize with the dynamics between marginal costs, marginal benefits, and the attainment of optimal production levels.