Resources Are Efficiently Allocated When Production Occurs at That Point

question 2

Multiple Choice

Resources are efficiently allocated when production occurs at that point at which

• A)marginal cost intersects average variable cost
• B)price is equal to average revenue
• C)price is equal to marginal cost
• D)marginal revenue equals marginal cost
• E)price is equal to average variable cost

---

Definitions:

Markdown Pricing Strategy

A pricing approach where products are initially offered at a higher price but are subsequently marked down, usually to stimulate sales or clear out inventory.

Off-Price Retailing Strategy

A retail strategy where goods are sold at prices lower than the standard retail prices, often obtained through special purchases or excess inventory.

New Models

The latest versions or designs of products, often featuring improvements or updates from previous editions.

Marked Down

When the price of an item is reduced, typically to clear inventory or increase sales during a promotion.