In a Factorial Design in Which the Factors Are Crossed

question 16

Multiple Choice

In a factorial design in which the factors are crossed,

• A) each of the factors has more than two levels.
• B) each of the factors has a different number of levels.
• C) each level of one factor occurs with each level of the other factor.
• D) there are more levels than conditions.

---

Definitions:

Allocative Efficiency

An economic state where resources are distributed in a way that maximizes the net benefit to society, ensuring that every good or service is produced up to the point where the last unit provides a benefit to consumers exactly equal to the cost of producing it.

Consumer Surplus

The disparity between the amount consumers are prepared to spend on a product or service and the amount they end up paying, indicating the advantage to consumers.

Allocative Efficiency

A state of the economy in which the distribution of resources among different uses is optimized, leading to an optimal level of consumer satisfaction.

Productive Efficiency

A situation in which an economy or entity is operating at maximum capacity, producing goods or services at the lowest possible cost.