Which Assumption(s) Is (Are) Necessary for an Efficient Allocation of Resources

question 173

Multiple Choice

Which assumption(s) is (are) necessary for an efficient allocation of resources among firms?

• A) Factor markets are open and competitive.
• B) All firms pay the same prices for inputs.
• C) Firms behave so as to maximize their profits.
• D) All of the above are correct.

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Definitions:

Mary McLeod Bethune

An African American educator and civil rights leader who founded the National Council of Negro Women and played a significant role in the New Deal government.

New Deal

A series of programs, public work projects, financial reforms, and regulations enacted by President Franklin D. Roosevelt in the United States during the 1930s to counteract the effects of the Great Depression.

Agricultural Policies

Strategies and regulations implemented by governments to influence their agricultural sector's economic activities, including subsidies, tariffs, and farming guidelines.

Landless Farmworkers

Agricultural laborers who do not own the land on which they work, often living in conditions of poverty and dependency.