When the Efficient Quantity Is Produced

question 116

Multiple Choice

When the efficient quantity is produced

• A)marginal social benefit equals marginal social cost.
• B)the quantity demanded equals the quantity supplied.
• C)resources are used in the activities in which they are most highly valued.
• D)the sum of consumer surplus and producer surplus is maximized.
• E)all of the above.

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Definitions:

Capital Structure

The particular combination of debt and equity used by a firm to finance its overall operations and growth.

Break Even

The point at which total costs and total revenue are equal, meaning there is no net loss or gain.

Fixed Costs

Costs that do not vary with the level of production or sales, such as rent, salaries, and insurance.

Variable Cost

Variable cost refers to expenses that change in proportion to the activity or volume of production or sales in a business.