Author Question: If the quantity of corn is such that the marginal cost of corn is greater than the marginal benefit ... (Read 116 times)

audie · **on:** Jun 29, 2018

If the quantity of corn is such that the marginal cost of corn is greater than the marginal benefit of corn, then I. there is a deadweight loss. II. more than the efficient quantity of corn is produced.

A) Only I is correct.
B) Only II is correct.
C) Both I and II are correct.
D) Neither I nor II is correct.

Question 2

The table above gives the total revenue and total cost for a perfectly competitive firm producing chocolate chip cookies. If the firm increases its output from 2 pounds of cookies to 3 pounds, the marginal revenue is ________ per pound of cookies.

A) 11
B) 15
C) 30
D) 45