If Efficiency Has Been Attained

question 8

Multiple Choice

If efficiency has been attained,

• A)it will be possible to make any one person better off without harming another.
• B)it will not be possible to make any one person better off without harming another.
• C)perfect competition must exist.
• D)the opportunity cost of any change in resource use must be zero.

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Definitions:

Total Revenue

The total income generated from the sale of goods or services, calculated by multiplying the price per unit by the number of units sold.

Market Price

The present cost at which one can buy or sell an item or service in a competitive market environment.

Perfectly Elastic

A situation where the demand or supply responds infinitely to changes in price, resulting in a horizontal demand or supply curve.

Perfectly Inelastic

A market condition where the quantity demanded or supplied does not change in response to price changes; the demand or supply curve is perfectly vertical.