Economics 9708 · AS & A Level · Behavioural economics

Behavioural economics — practice question

If a business raises its output, under what circumstances will this produce efficiency?

  • Awhen the cost of producing the last extra unit equals the value the consumers place on it
  • Bwhen the cost of producing the last extra unit is at a minimum
  • Cwhen the total cost of production equals the value that consumers place on the total product
  • Dwhen the total revenue reaches a maximum

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