Marginal Cost Pricing Results in the Most Desirable Mix of Goods

question 93

Multiple Choice

Marginal cost pricing results in the most desirable mix of goods and services from the consumer's standpoint because

• A)Firms are forced to produce at the most technically efficient output level.
• B)Economic profits are zero.
• C)Prices are forced down to the lowest possible level.
• D)The prices consumers pay are a reflection of the value of the goods and services given up.

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Definitions:

Performance Data

Quantitative information related to the efficiency, effectiveness, and outcomes of various processes, systems, or employees.

Future Performance

An estimate or forecast of a person's, system's, or entity's actions and achievements in a period that is yet to come.

Future Decisions

Choices or resolutions that will be made at a later time, based on the evaluation of data, trends, and potential outcomes.

Capital Budget

A budget for investments in major physical assets, such as buildings and machinery, expected to provide benefits in the future.