When Economic Efficiency Is Attained, It Implies All of the Following

question 134

Multiple Choice

When economic efficiency is attained, it implies all of the following, except

• A) per-unit cost of output produced is at minimum.
• B) allocative efficiency is achieved.
• C) total consumer and producer surplus is at a maximum.
• D) the gap between marginal benefits and marginal costs of production is at maximum.

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Definitions:

Strong-form Efficient

A hypothesis suggesting that all information, both public and private, is reflected in a stock's price, making it impossible to consistently achieve higher returns.

Variance

A measure of the dispersion of a set of data points around their mean, often used in finance as a measure of the risk associated with a particular investment.

Average Squared Difference

A statistical measure calculated by averaging the squares of differences from a mean, often used in variance calculations.

Actual Return

The real profit or loss generated on an investment over a specified period, taking into account both capital gains and income received from the investment.