Resources Are Efficiently Allocated When Production Occurs Where

question 52

Multiple Choice

Resources are efficiently allocated when production occurs where

• A) marginal cost equals average variable cost.
• B) price is equal to average revenue.
• C) price is equal to marginal cost.
• D) price is equal to average variable cost.

---

Definitions:

Secured Creditor

A lender protected by an asset or collateral, ensuring priority payment if the borrower defaults.

Seize Property

The act of taking possession of property, often by legal authority, due to the failure to comply with a court order or owing to a breach of law.

Guarantor

A person or entity that agrees to be responsible for another's debt or performance under a contract if the original party fails to meet their obligations.

Creditor/Debtor Transaction

A financial relationship where one party (creditor) provides goods, services, or money to another party (debtor) under the agreement that the debtor will repay the creditor at a later date.