Barb's Soccer Ball Company Produces 800 Soccer Balls Per Week.if
Barb's Soccer Ball Company produces 800 soccer balls per week.If the firm used marginal cost pricing to determine soccer ball output,it would produce 600 soccer balls.Consumers do not receive the most desirable quantity of soccer balls from Bib's because
A)Economic losses are occurring.
B)The firm must be earning higher than normal economic profits.
C)The cost of producing the additional 200 soccer balls is greater than the amount that consumers are willing to pay for the additional soccer balls.
D)The cost of producing the additional 200 soccer balls is less than the amount that consumers are willing to pay for the additional soccer balls.
When economic losses exist in the cereal market,for example,this is an indication that
A)The goods and services that society is giving up (the opportunity cost)are more valuable than the cereal being produced.
B)Society's scarce resources are being used in the best way.
C)Not enough firms are producing cereal (assuming that the market is perfectly competitive).
D)The WHAT to produce question is being answered efficiently.
When economic profits exist in the market for a particular product,this is a signal to producers that
A)Consumers would like more scarce resources devoted to the production of this product.
B)The market is oversupplied with this product.
C)The best mix of goods and services is being produced with society's scarce resources.
D)Price is at the minimum of the ATC curve.
The equilibrium price of a good or service in a competitive market is
A)Higher than it should be because profits are included in the price.
B)A reflection of the opportunity cost of producing the product.
C)Lower than it should be because bankruptcies are common in competitive markets.
D)Higher than the opportunity cost of producing the product.