Allocative Efficiency Occurs When

question 52

Multiple Choice

Allocative efficiency occurs when

• A) we cannot produce more of any good without giving up some other good that we value more highly.
• B) we cannot produce more of any one good without giving up some other good.
• C) marginal benefit exceeds marginal cost.
• D) opportunity costs are decreasing.

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Definitions:

Sealed-Bid

A type of auction or bidding process where all bidders simultaneously submit sealed bids, with no bidder knowing the bid of any other participant.

Bid Aggressively

The strategy of actively and assertively placing higher bids to secure an auctioned item or a contract.

Competition

The rivalry among sellers in the same market to attract customers, increase sales, and achieve a dominant position in the market.

Expected Value

A statistical concept that calculates the average result when the same event is repeated multiple times.