If a Market Is Allocatively Efficient

question 1

Multiple Choice

If a market is allocatively efficient,

• A)firms are minimizing marginal cost
• B)firms are minimizing total cost
• C)consumers are minimizing expenditures
• D)it must be impossible to increase total utility
• E)it must be impossible to decrease output

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Definitions:

Tort

A legal term for a civil wrong or breach of duty to another person, resulting in loss or harm, and subject to compensation or legal remedy.

Criminal Act

An action or omission that constitutes an offense that may be prosecuted by the state and is punishable by law.

Exculpatory Clauses

Contractual provisions that release one party from liability for wrongdoing towards another, often found in service agreements.

Misrepresentations

False or misleading statements or assertions that can lead someone to believe in a reality that is not true, potentially affecting decisions or contracts.