Using Figure 4

question 113

Multiple Choice

Using Figure 4.1,suppose that point B represents the optimal mix of output for a society.If market forces cause society to produce and consume at point C,then

• A)There is government failure.
• B)The forces of supply and demand will return society to point B.
• C)Points A and D are unattainable with the given resources and technology.
• D)There is market failure.

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Definitions:

Classification Method

A systematic approach in categorizing data or items based on shared characteristics or criteria.

Contribution To Profit

The measure of how individual products, services, or business units add to the overall profit of a company.

Quadrant Model

A strategic planning tool that divides information, risks, or activities into four quadrants to facilitate analysis and decision-making.