Which of the Following Is Necessary for Allocative Efficiency to Be

question 34

Multiple Choice

Which of the following is necessary for allocative efficiency to be achieved?

• A) The difference between marginal benefit and marginal cost must be maximised.
• B) Production must be at a point inside the production possibilities frontier.
• C) Marginal benefit must be maximised.
• D) Marginal benefit must equal marginal cost.
• E) Marginal cost must be minimised.

Grasp the principles and benefits of Collaborative, Planning, Forecasting, and Replenishment (CPFR) in supply chains.

Recognize the importance of collaboration, cooperation, and trust in enhancing supply chain performance.

Understand the bullwhip effect and its relation to coordination issues within supply chains.

Identify the different forms of collaboration in supply chain practices.

---

Definitions:

6 ¾% Bond

A debt security issued with an interest rate of six and three-quarters percent, denoting the annual return to investors.

Current Yield

A financial ratio that measures the annual income (interest or dividends) from an investment as a percentage of the current price of the security.

10 ½% Bond

A bond that pays an annual interest rate of 10.5% to its holder.

Yield To Maturity

The total expected return on a bond if held until it matures, including interest payments and capital gains or losses.