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:

Protein-Coding Sequence

A protein-coding sequence is a segment of DNA or RNA that contains the information necessary to construct a protein, critical for the functioning of cells and organisms.

Adaptation

An inherited aspect of an individual that allows it to outcompete other members of the same population that lack the trait (or that have a different version of the trait). Adaptations are traits that have evolved through the mechanism of natural selection.

Homologous

Homologous refers to structures or genes that originate from a common ancestor, often performing similar or related functions in different organisms.

Convergent

The evolutionary process wherein organisms not closely related independently evolve similar traits as a result of having to adapt to similar environments or ecological niches.