Author Question: Refer to Figure 5-1. At the market equilibrium, A) the marginal cost is less than the marginal ... (Read 112 times)

wrbasek0 · **on:** Jun 29, 2018

Refer to Figure 5-1. At the market equilibrium,

A) the marginal cost is less than the marginal benefit.
B) the marginal cost is equal to the marginal benefit.
C) the marginal cost is greater than the marginal benefit.
D) the marginal cost is zero.

Question 2

Automobiles and many other products are differentiated. As a result,

A) we see countries specializing completely in the production of automobiles.
B) consumers of automobiles have difficulty deciding what type of imported automobile to buy.
C) different countries may each have a comparative advantage in producing different types of automobiles.
D) the quality of imported automobiles is less than it could be.