Suppose that a fully-employed economy produces only two goods, hamburgers and flat-panel TVs.
If the economy is currently producing more than the optimal quantity of hamburgers, then to attain the optimal allocation of resources it should:

A. produce more hamburgers and fewer TVs.
B. produce more TVs and fewer hamburgers.
C. produce more of both goods.
D. produce fewer of both goods.

Respuesta :

Answer:

B) produce more TVs and fewer hamburgers.

Explanation:

Since the economy is producing too may hamburgers, more than the optimal quantity, they should lower the production of hamburgers and increase the production of something else, in this case the only thing else in flat-panel TVs.

When a company or an economy produces more than the optimal quantity of any product, it will start losing money since the marginal cost of producing that product will exceed the marginal revenue generated by selling that product.