Reference: Ref 20-2 (Table: Rawls's Maximin) Refer to the Table

question 44

Multiple Choice

Reference: Ref 20-2 (Table: Rawls's Maximin) Refer to the table. According to the maximin principle, which of the societies is ranked lowest?

• A) A
• B) C
• C) D
• D) All societies are ranked equally.

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Definitions:

Competitive Price-Taker

A firm or individual that has no control over the market price and must accept the prevailing price set by market supply and demand.

Profit

The financial gain realized when the revenue gained from a business activity exceeds the expenses, costs, and taxes needed to sustain the activity.

Price-taker Firm

A firm that has no control over the market price and must accept the prevailing market price for its products.

Marginal Revenue

The extra revenue generated by the sale of an additional unit of a product or service.