An Efficient Use of Resources Occurs When

question 6

Multiple Choice

An efficient use of resources occurs when

• A)a deadweight loss arises.
• B)total social benefit from a good equals its total social cost.
• C)producer surplus is eliminated.
• D)consumer surplus is maximized.
• E)a monopoly practices perfect price discrimination.

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Definitions:

Quantum Meruit

A legal principle meaning "as much as he has deserved," used to determine the amount of compensation due for services provided when there is no existing contract.

Service

The action or process of serving or providing assistance to others, often in the context of customers or clients.

Estoppel

A rule whereby a person may not deny the truth of a statement of fact made by him or her when another person has relied and acted upon the statement.

Consideration

The benefit or value that must be exchanged between parties to form a valid contract.