To Achieve Allocative Efficiency, Firms

question 95

Multiple Choice

To achieve allocative efficiency, firms

• A)strive to minimize fixed costs
• B)strive to maximize profits
• C)produce at their minimum long-run average cost
• D)produce at their minimum long-run marginal cost
• E)produce the output consumers want most

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Definitions:

Square Root

A mathematical function that provides the original value when it is multiplied by itself.

Standard Deviation

The positive square root of the variance.

Advertising

The action of calling public attention to products, services, needs, etc., especially by paid announcements in print, broadcast, or electronic media.

Sales

The activity or business of selling products or services.