The following graph shows the marginal benefit (MB) and marginal cost (MC) curves for baseballs in an economy. 18 Marginal Cost 15 12 Marginal Benefit 05 10 15 20 25 30 35 40 45 50 55 60 QUANTITY (Millions of baseballs per year) IF 50 million baseballs are sold, which means that: The production of baseballs is currently at an inefficient level, and to reach efficiency more should be produced. The production of baseballs is currently at an inefficient level, and to reach efficiency less should be produced. From the data given it is impossible to tell if baseballs are being produced at the efficient level. The production of baseballs is currently at the efficient level. PRICE (Dollars per baseball)
The following graph shows the marginal benefit (MB) and marginal cost (MC) curves for baseballs in an economy. 18 Marginal Cost 15 12 Marginal Benefit 05 10 15 20 25 30 35 40 45 50 55 60 QUANTITY (Millions of baseballs per year) IF 50 million baseballs are sold, which means that: The production of baseballs is currently at an inefficient level, and to reach efficiency more should be produced. The production of baseballs is currently at an inefficient level, and to reach efficiency less should be produced. From the data given it is impossible to tell if baseballs are being produced at the efficient level. The production of baseballs is currently at the efficient level. PRICE (Dollars per baseball)
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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