Author Question: In the market for DVDs, 500,000 DVDs a month are available. The value people place on the 500,000th ... (Read 52 times)

plus1 · **on:** Jun 29, 2018

In the market for DVDs, 500,000 DVDs a month are available. The value people place on the 500,000th DVD a month is less than the marginal social cost of producing it. Resource use ________.

A) is efficient
B) is inefficient
C) would be more efficient if people firms would produce more DVDs
D) would be more efficient if people would buy more DVDs

Question 2

In the above figure, at the price level of 140 and real GDP of

A) 15 trillion, firms will not be able to sell all their output.
B) 5 trillion, firms will not be able to sell all their output.
C) 5 trillion, consumers will not be able to buy all the goods and services they demand.
D) 15 trillion, consumers will not be able to buy all the goods and services they demand.