Product development is efficient if the A) new product ...

[hbsimmons88]

Product development is efficient if the
 
  A) new product actually brings great benefits to the consumer.
  B) producer's marginal cost of product development equals the consumer's marginal benefit.
  C) producer surplus from selling the product equals the consumer surplus.
  D) average cost of the product development equals the average revenue generated.

Question 2

Marginal cost is the minimum price that producers must receive to induce them to produce another unit of a good or service.
 
  Indicate whether the statement is true or false

[bd5255]

Answer to Question 1

B

Answer to Question 2

TRUE