Examlex
If you need to move an object on a slide a very small distance to the left, which of the following actions is the best method for accomplishing this?
Allocative Efficiency
A state of the economy in which production is in accordance with consumer preferences; every good or service is produced up to the point where the last unit provides a utility to consumers equal to the cost of producing it.
Consumer Surplus
The difference in the amount consumers are prepared and have the means to pay for a service or good compared to the amount they actually do pay.
Producer Surplus
The difference between what producers are willing to accept for a good versus what they actually receive, often depicted as the area above the supply curve and below the market price.
Average Cost
The total cost of production divided by the number of goods produced; also known as per unit cost.
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