When the Allocation of Resources Is Such That a Different

question 97

Multiple Choice

When the allocation of resources is such that a different allocation would increase society's welfare, economists say:

• A)there is market failure.
• B)the efficiency condition is met.
• C)decision makers have faced the marginal benefits and marginal costs of their decisions.
• D)producers have maximized total cost.

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Definitions:

Demand for Wine

The desire and willingness of consumers to purchase wine at various prices, influenced by factors such as income, tastes, and substitutes.

Imports

Goods or services brought into one country from another for sale.

Cournot Duopolists

Refers to firms in a duopoly (a market dominated by two companies) that determine their strategy based on the assumption that the other firm's output will be constant.

Demand Curve

A graph showing the relationship between the price of a good and the quantity of that good consumers are willing and able to purchase at various prices.