Which of the Following Statements Is True Concerning Economic Efficiency

question 13

Multiple Choice

Which of the following statements is true concerning economic efficiency?

• A)Equilibriums that achieve economic efficiency generate maximum net benefit possible from a given set of resources.
• B)Equilibriums that achieve economic efficiency generate maximum net profit possible from a given set of resources.
• C)Equilibriums that achieve economic efficiency generate minimum marginal cost possible from a given set of resources.
• D)Equilibriums that achieve economic efficiency generate maximum marginal benefit possible from a given set of resources.

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Definitions:

Impairment Loss

The amount by which the carrying amount of an asset exceeds its recoverable amount, leading to a decrease in the asset's value on the financial statements.

Straight-Line Depreciation

A process of distributing the expenditure of a tangible asset across its useful life in identical annual amounts.

Technological Change

The overall process of invention, innovation, and diffusion of technology or processes.

Future Cash Flows

Estimated future financial transactions that a company expects to receive or pay out.