Efficient Markets Are Considered Rationing Devices Because

question 35

Multiple Choice

Efficient markets are considered rationing devices because

• A)consumers how value the good or service the most will be the one who get it.
• B)suppliers can produce the good or service at the lowest cost ensuring a lower price.
• C)the equality of the market allows for all to benefit.
• D)of government decree.

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Definitions:

Proprietor's Income

The income earned by the owner of a sole proprietorship, which consists of the profits generated by the business.

Production Factor

An input used in the manufacturing of goods or services, typically categorized into land, labor, and capital.

College

An educational institution or a constituent part of one that offers undergraduate and, in some cases, postgraduate degrees.

Marginal Product

The additional quantity of output produced by using one more unit of a given input.