If a Market Is Productively Efficient

question 26

Multiple Choice

If a market is productively efficient,

• A)the output is being produced at the lowest possible resource cost
• B)the output is selling for the lowest possible price
• C)economic profit in the market is positive
• D)the output being produced is what consumers want
• E)no firm can earn a normal profit

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Definitions:

Defectives

Items or units that fail to meet the quality criteria set for them and are therefore considered unacceptable for use.

Probability

The branch of mathematics concerned with the analysis and interpretation of numerical data based on the likelihood of different outcomes.

Presale Testing

The process of evaluating the potential market success of a product or service before it is launched to the public.

Probability

The quantification of the probability that an event will happen, expressed as a numerical value ranging from 0 to 1.