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If the Market Produces an Efficient Level of a Good,then

question 58

Multiple Choice

If the market produces an efficient level of a good,then we know that the good must be _____ and _____ in consumption.


Definitions:

Sunk Cost

Expenses that are already spent and cannot be retrieved or changed by any future activities.

Opportunity Cost

The foregone benefit that would have been derived by choosing an alternative option.

Differential Cost

A future cost that differs between any two alternatives.

Variable Cost Per Unit

The cost that varies with each unit produced, not including fixed costs.

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