Efficiency Is Achieved

question 401

Multiple Choice

Efficiency is achieved

• A) when output is being produced at a point inside a production possibilities curve.
• B) when producers are getting the maximum possible output from the available resources.
• C) when consumers are able to buy everything that they want.
• D) when prices of all goods and services go to zero.

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Definitions:

Skimming Pricing

A pricing strategy where a product is initially sold at a high price to target customers who are less price-sensitive, before gradually lowering the price.

Prestige Pricing

A pricing strategy where prices are set higher than average to project exclusivity, quality, or luxury, appealing to consumers' status and prestige.

Standard Markup Pricing

Adding a fixed percentage to the cost of all items in a specific product class.

Cost-Oriented

A pricing strategy where the price of a product or service is determined by adding a profit margin to its production cost.