An Efficient Distribution of Goods Requires That

question 54

Multiple Choice

An efficient distribution of goods requires that

• A)everyone gets an equal share of each good.
• B)marginal cost equal marginal utility for the last unit produced.
• C)each person derives the same total utility from the good.
• D)since tastes differ, every person pays a different price in accordance with different marginal utilities.

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Definitions:

Marginal Revenue

The increase in revenue that results from the sale of one additional unit of product or service.

Demand Curve

A graph depicting the relationship between the price of a good or service and the quantity demanded for a given period, typically showing a downward slope from left to right.

Price Elasticity

A measure of how much the quantity demanded of a good responds to a change in its price, with elasticity indicating responsiveness.

Demand Curve

A graph depicting the relationship between the price of a good and the quantity demanded by consumers, typically showing an inverse relationship.