Productive Efficiency for an Individual Firm Requires That

question 43

Multiple Choice

Productive efficiency for an individual firm requires that

• A) all resources be fully used.
• B) P = ATC for all goods.
• C) the firm be allocatively efficient.
• D) MC = P for all goods.
• E) the firm be on its LRAC curve.

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Definitions:

Comparative Advantage

The ability of a country, individual, company, or region to produce a good or service at a lower opportunity cost than its competitors.

Absolute Advantage

Refers to the ability of a country, individual, or firm to produce a good or service more efficiently than its competitors, using the same amount of resources.

Fair Trade

An organized movement that aims to help producers in developing countries achieve better trading conditions and promote sustainability.

World War II

A global conflict that lasted from 1939 to 1945, involving most of the world's nations and marked by significant events and battles across continents.