Author Question: In the above figure, if five million CDs per month are produced and consumed, that is A) better ... (Read 110 times)

genevieve1028 · **on:** Jun 29, 2018

In the above figure, if five million CDs per month are produced and consumed, that is

A) better than producing and consuming four million CDs because more is always better than less.
B) more than the efficient quantity because the marginal social benefit exceeds the marginal social cost.
C) more than the efficient quantity because the marginal social cost exceeds the marginal social benefit.
D) less than the efficient quantity because the opportunity cost exceeds the marginal social benefit.

Question 2

Jose owns a local coffee shop. When Jose calculates how his total revenue changes in response to hiring an extra worker, Jose is calculating the

A) marginal revenue.
B) value of marginal product of labor.
C) marginal product of labor.
D) total revenue.