Resources Are Allocated Efficiently When

question 129

Multiple Choice

Resources are allocated efficiently when

• A)the exchange value of the resources to demanders is greater than the opportunity cost of the resources.
• B)the marginal benefit to demanders of the resources in the goods they purchase is less than the marginal cost to suppliers of the resources they use in producing the goods.
• C)firms produce the quantity of output at which price is equal to marginal cost.
• D)firms produce the quantity of output at which price is greater than marginal cost.

---

Definitions:

Product Price

The amount of money required to purchase a good or service, determined by factors such as production costs, demand, and supply.

Herfindahl Index

A gauge of company sizes within their market and a marker for the degree of rivalry between them.

Market Shares

The share of a market dominated by a specific company or product, commonly represented as a percentage of the overall sales within that market.

Industry

It refers to the collection of businesses and operations involved in the production, manufacturing, or distribution of goods and services in a specific sector.