If the marginal cost of a cup of tea is greater than its marginal benefit, then to increase efficiency a. nothing should be done if the marginal benefit is greater than the marginal cost by the maximum amount because in this case the efficient quantity of cups of tea is being produced. b. more cups of tea should be produced. production should be halted. c. fewer cups of tea should be produced d. More information is needed about the price of a cup of tea in order to determine if production should be increased, decreased, or not changed.
If the marginal cost of a cup of tea is greater than its marginal benefit, then to increase efficiency a. nothing should be done if the marginal benefit is greater than the marginal cost by the maximum amount because in this case the efficient quantity of cups of tea is being produced. b. more cups of tea should be produced. production should be halted. c. fewer cups of tea should be produced d. More information is needed about the price of a cup of tea in order to determine if production should be increased, decreased, or not changed.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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If the marginal cost of a cup of tea is greater than its marginal benefit, then to increase efficiency
a. nothing should be done if the marginal benefit is greater than the marginal cost by the maximum amount because in this case the efficient quantity of cups of tea is being produced.
b. more cups of tea should be produced. production should be halted.
c. fewer cups of tea should be produced
d. More information is needed about the price of a cup of tea in order to determine if production should be increased, decreased, or not changed.
a. nothing should be done if the marginal benefit is greater than the marginal cost by the maximum amount because in this case the efficient quantity of cups of tea is being produced.
b. more cups of tea should be produced. production should be halted.
c. fewer cups of tea should be produced
d. More information is needed about the price of a cup of tea in order to determine if production should be increased, decreased, or not changed.
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