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A situation in which the price charged is less than society opportunity cost would

 A situation in which the price charged is less than society's opportunity cost would lead to

A) too little being produced.

B) too much being produced.

C) an efficient amount being produced.

D) marginal cost pricing.

17) Which of the following best describes a situation of economic efficiency?

A) A firm produces to the point at which P = AVC, with MR

B) A firm produces to the point at which P = ATC, with MC

C) A firm produces to the point at which MR = AFC, with P = AVC.

D) A firm produces to the point at which MR = MC, with P = MC.

18) A firm's long-run position under perfect competition is often said to be efficient because

A) P = AR > MC = AVC.

B) P = AR > MR = MC.

C) P = MR = AVC = AFC.

D) P = MR = MC = ATC.

19) In a perfectly competitive market, if P > MC, then

A) too little output is being produced.

B) too much output is being produced.

C) production is efficient, as the firm is earning profits.

D) the firm is paying a price for resources that is too high.

20) In a perfectly competitive market, if P

A) too little output is being produced.

B) too much output is being produced.

C) production is efficient, as the firm is earning profits.

D) the firm is paying a price for resources that is too high.

21) What is marginal cost pricing? Why is marginal cost pricing important?

22) Why would it be economically inefficient for a firm to charge the price of a good greater than its marginal cost?

23) Why is the pricing outcome of a perfectly competitive firm efficient in economic sense?

Dec 10 2019 View more View Less

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