For an Entire Economy,allocative Efficiency Requires That

question 36

Multiple Choice

For an entire economy,allocative efficiency requires that

• A)price is greater than marginal cost for all goods.
• B)price equals average cost for all goods.
• C)marginal cost equals price for all goods.
• D)MRP is equated for all factors of production.
• E)goods are allocated equitably across markets.

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Definitions:

Sodium

A chemical element, symbol Na, a highly reactive metal and an essential nutrient for human health.

Calories

A measure of energy in food, technically defined as the amount of heat needed to raise the temperature of one kilogram of water by one degree Celsius.

Scatter Diagram

A graphical representation of data points for two variables in a dataset, used to investigate the possible relationship between them.

Interval Data

A type of numerical data that represents quantities and for which intervals between values are meaningful, allowing for a range of mathematical operations.