Which of the Following Statements Is Correct

question 73

Multiple Choice

Which of the following statements is correct?

• A)There is a trade-off between product variety and allocative efficiency.
• B)Product variety and allocative efficiency are complementary; increasing one enhances the other.
• C)There is no relationship between product variation and allocative efficiency.
• D)Greater excess capacity reduces firms' ability to differentiate products.

---

Definitions:

Opioid Addiction

A chronic, relapsing disorder characterized by a compulsive need to use opioid drugs, despite harmful consequences.

Steady Increase

A consistent rise or growth in numbers or volume over a period of time.

Sudden Decrease

An abrupt decline in the quantity or quality of something, which can concern various contexts such as population, health, or environmental conditions.

Narcotics

Psychoactive substances that tend to induce sleep or numbness and may lead to dependence or addiction, commonly used for pain relief.