A Market Is Allocatively Efficient If

question 157

Multiple Choice

A market is allocatively efficient if

• A) the sum of the consumer surplus and the producer surplus has been maximized.
• B) consumer surplus has been maximized.
• C) producer surplus has been maximized.
• D) profit has been maximized.

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Definitions:

Observation Research

A data-collection tool that involves watching how people behave and recording anything about that behavior that might be relevant to the research objective.

Sales Tracking

A type of research that follows changes in sales during and after promotional programs to see how the marketing efforts affected the company’s sales.

Place

As one of the “four Ps,” includes the activities the firm undertakes to make its product available to potential customers. Also known as distribution.

Distribution Function

Part of the marketing mix that involves the process of making a product or service available for consumption or use by a consumer or business user.