Register
Prices below the free market equilibrium are inefficient because the willingness to pay by someone to consume an additional unit ________ the marginal cost to someone for producing that unit. Group of
216k views
10 votes
Prices below the free market equilibrium are inefficient because the willingness to pay by someone to consume an additional unit ________ the marginal cost to someone for producing that unit. Group of answer choices exceeds equals None of the above; efficiency is defined in terms of natural resources, not market equilibrium. is less than

User Topper
by
6.0k points

1 Answer

6 votes

Answer: is less than

Step-by-step explanation:

The equilibrium price in a free market economy represents the point where marginal revenue and marginal costs are being maximised.

If the price falls below this level therefore, a situation arises where the marginal cost of producing this good is more than the marginal price that people can pay for this good which would lead to losses.

User SeanChense
by
5.9k points
Ask a Question
Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.

6.6m questions

8.7m answers

Other Questions

One reason that businesses want to combine with other businesses is to A. avoid taxes. B. delay expenses. C. hire more workers. D. reduce expenses.
Which of the following possesses the sole power to create revenue bills?
Which of the following is an example of a fixed expense? A.) Clothing B.) Rent C.) Food D.) Entertainment
A ______ is "the basic interpretive mechanism to let people know what an organization is doing and are sent out to editors and reporters in hopes of stimulating favorable stories about their organizations"
All of the following are fees typically charged by credit card companies EXCEPT: A. Late payment fee B. Balance Transfer fee C. Annual membership fee D. Reload fee
Link Copied!