At the Output Level Defining Allocative Efficiency

question 125

Multiple Choice

At the output level defining allocative efficiency,

• A) the areas of consumer and producer surplus necessarily are equal.
• B) marginal benefit exceeds marginal cost by the greatest amount.
• C) consumer surplus exceeds producer surplus by the greatest amount.
• D) the maximum willingness to pay for the last unit of output equals the minimum acceptable price of that unit of output.

---

Definitions:

Venous Tone

The degree of constriction experienced by the veins, influencing the volume of blood held within venous reservoirs and blood pressure.

Medulla Oblongata

The lower portion of the brainstem that regulates vital functions, such as heart rate and breathing.

Vasomotor Center

Area within the medulla oblongata that regulates the diameter of blood vessels by way of the sympathetic nervous system.

Blood Colloid Osmotic Pressure

Pressure exerted by plasma proteins on capillary walls, which helps to maintain the water balance between blood and interstitial fluid.