In Which Situation Are Optimum and Maximum Capacities Most Likely

question 14

Multiple Choice

In which situation are optimum and maximum capacities most likely to be the same?

• A)Public transport
• B)A live concert performance
• C)An aircraft with high-density seating
• D)Airport taxis at peak travel times
• E)None of these; the two measures are never equal

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Definitions:

Deadweight Loss

The reduction in economic efficiency that happens when a good or service doesn't reach or cannot reach equilibrium.

Price Elasticity

A measure of the responsiveness of the quantity demanded or supplied of a good to a change in its price.

Tax

A financial charge or levy imposed by a government on individuals or entities to fund public services and government spending.

Inefficiency Costs

The costs associated with not utilizing resources in the most productive manner, which can lead to increased operational expenses and reduced profitability.