If People Are Willing to Pay $130 for a Particular

Multiple Choice

If people are willing to pay $130 for a particular bicycle and its marginal cost is $80

A) bicycle producers enjoy a profit of $50.
B) bicycle production will be unprofitable.
C) too many resources are being allocated to the production of bicycles.
D) the social value of one more bicycle is $130.
E) the bicycle industry is perfectly competitive.