When a Fixed Stock of Inputs Cannot Be Reallocated Among

question 59

Multiple Choice

When a fixed stock of inputs cannot be reallocated among firms in an economy without reducing the output of at least one of the goods that is produced in the economy, the allocation satisfies:

• A)exchange efficiency.
• B)input efficiency.
• C)substitution efficiency.
• D)Walras' Law.

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Definitions:

Efficient Level

The optimal point of production or operation where a firm, market, or economy can achieve the best possible outcome with the least waste of resources.

Society's Point

A perspective or consideration based on the collective interests or well-being of a community or society as a whole.

Total Revenue

The total income a firm receives from the sale of its goods or services.

Profit Maximizing

The process a firm uses to identify the most profitable pricing and production levels.