A Change in Economic Output Is ________ If the Value

question 230

Multiple Choice

A change in economic output is ________ if the value of the resulting gains exceeds the value of the resulting losses.

• A) potentially efficient
• B) always efficient
• C) always inefficient
• D) irrelevant

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Definitions:

Variable Costs

Costs that change in proportion to the level of production or business activity.

Profit

The financial gain made in a transaction or operation, calculated as the difference between revenue and expenses.

Fixed Costs

Expenses that do not change in relation to levels of production or sales, remaining constant even as output varies.

Unit Variable Cost

The cost associated with producing an additional unit of a product, not including fixed costs that remain constant regardless of production volume.