Which One of the Following Need Not Be Satisfied to Achieve

question 21

Multiple Choice

Which one of the following need not be satisfied to achieve allocative efficiency?

• A)Marginal social cost equals marginal social benefit.
• B)The sum of consumer surplus and producer surplus is maximized.
• C)Price equals marginal social benefit.
• D)Price equals marginal social cost.
• E)Only high-quality goods are produced.

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Definitions:

Balance Theory

A theory which proposes that the motivation to maintain consistency among one’s thoughts colors how people form new attitudes and can also drive them to change existing attitudes.

Cognitive Dissonance

A psychological conflict resulting from incongruous beliefs and attitudes held simultaneously.

Thoughts

Mental processes or ideas that occur as part of cognitive functions like reasoning, perception, and judgment.

Recency Effect

The tendency to remember more recent information better than earlier information, often impacting how decisions and judgments are made.