Asked by Ambriel Andrzejewski on Jun 17, 2024
Verified
Society will produce ________ if price and marginal cost are equated for all firms.
A) the efficient mix of output
B) the maximum output
C) the minimum output
D) no output
Marginal Cost
The expense increase associated with creating an additional unit of a product or service.
Mix of Output
The combination or range of different goods or services produced by an economy or firm, reflecting its production choices and strategy.
- Acquire knowledge about the situations that result in societal benefits due to modifications in the levels of production, as well as the correlation between price and marginal cost in competitive environments.
Verified Answer
BS
Brian ShomaliJun 18, 2024
Final Answer :
A
Explanation :
When price equals marginal cost for all firms, it results in the efficient allocation of resources, leading to the production of an efficient mix of output. This principle is a fundamental concept in microeconomics, indicating that resources are being used in a way that maximizes consumer and producer surplus.
Learning Objectives
- Acquire knowledge about the situations that result in societal benefits due to modifications in the levels of production, as well as the correlation between price and marginal cost in competitive environments.