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.

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Definitions:

Remoteness Test

A legal principle used to determine if the damage suffered from a breach of contract or tort was foreseeable and therefore compensable.

Negligence Action

A legal proceeding initiated because someone failed to take reasonable care, resulting in harm or damage to another.

Concert Pianist

A professional pianist who performs solo recitals, concertos with orchestras, and chamber music in concert halls.

Negligence

The failure to exercise the care that a reasonably prudent person would exercise in similar circumstances, resulting in harm or damage.