After an investigation into the automobile industry, we have concluded the marginal benefit of an additional car is $10,000. The marginal cost of producing an additional car is $12,000. It was also discovered that producers are minimizing the average costs of production. We can conclude that Multiple Choice production is neither allocatively nor productively efficient. production is both allocatively and productively efficient. production is not allocatively efficient but is productively efficient. production is allocatively efficient but not productively efficient.
After an investigation into the automobile industry, we have concluded the marginal benefit of an additional car is $10,000. The marginal cost of producing an additional car is $12,000. It was also discovered that producers are minimizing the average costs of production. We can conclude that Multiple Choice production is neither allocatively nor productively efficient. production is both allocatively and productively efficient. production is not allocatively efficient but is productively efficient. production is allocatively efficient but not productively efficient.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:After an investigation into the automobile industry, we have concluded the marginal benefit of an additional car is $10,000. The marginal cost of
producing an additional car is $12,000. It was also discovered that producers are minimizing the average costs of production. We can conclude that
Multiple Choice
production is neither allocatively nor productively efficient.
production is both allocatively and productively efficient.
production is not allocatively efficient but is productively efficient.
production is allocatively efficient but not productively efficient.
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