This topic contains a solution. Click here to go to the answer

Author Question: If the marginal social benefit of a car exceeds the marginal social cost of a car, we are producing ... (Read 60 times)

Mr.Thesaxman

  • Hero Member
  • *****
  • Posts: 514
If the marginal social benefit of a car exceeds the marginal social cost of a car, we are producing too many cars. True or false? Explain.
 
  Indicate whether the statement is true or false

Question 2

A monopolistically competitive firm will end up selling its output for a price such that its
 
  A) price is greater than marginal cost.
  B) price is equal to marginal cost.
  C) price is equal to marginal revenue.
  D) price is equal to average total cost.



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

britb2u

  • Sr. Member
  • ****
  • Posts: 331
Answer to Question 1

False. If the marginal social benefit of a car exceeds the marginal social cost of a car, we can gain value by producing another car and we are losing value by not producing it. If the marginal social benefit exceeds the marginal social cost, producing another car yields a benefit that exceeds the cost of producing the car. So we are producing too few cars.

Answer to Question 2

A




Mr.Thesaxman

  • Member
  • Posts: 514
Reply 2 on: Jun 29, 2018
YES! Correct, THANKS for helping me on my review


atrochim

  • Member
  • Posts: 331
Reply 3 on: Yesterday
:D TYSM

 

Did you know?

According to the Migraine Research Foundation, migraines are the third most prevalent illness in the world. Women are most affected (18%), followed by children of both sexes (10%), and men (6%).

Did you know?

Never take aspirin without food because it is likely to irritate your stomach. Never give aspirin to children under age 12. Overdoses of aspirin have the potential to cause deafness.

Did you know?

According to the CDC, approximately 31.7% of the U.S. population has high low-density lipoprotein (LDL) or "bad cholesterol" levels.

Did you know?

The heart is located in the center of the chest, with part of it tipped slightly so that it taps against the left side of the chest.

Did you know?

More than 20 million Americans cite use of marijuana within the past 30 days, according to the National Survey on Drug Use and Health (NSDUH). More than 8 million admit to using it almost every day.

For a complete list of videos, visit our video library