Resource Allocative Efficiency Occurs When a Firm

question 65

Multiple Choice

Resource allocative efficiency occurs when a firm

• A)minimizes costs of production yet charges the highest possible price.
• B)produces the quantity of output at which price exceeds average total cost by the greatest amount.
• C)produces the quantity of output at which price equals marginal cost.
• D)produces the quantity of output at which price equals average total cost.
• E)produces the quantity of output at which price equals average variable cost.

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Definitions:

Class Action

A lawsuit filed by one or more plaintiffs on behalf of a larger group who are affected by the same issue.

Fuel-Co Gas Stations

A fictional or generic name for a chain or brand of gasoline filling stations.

Unexpected Fee

A charge or cost that is not initially disclosed or anticipated by a consumer or client.

Individual Lawsuits

Legal actions taken by one individual against another or a company, separate from class action or collective lawsuits.