What Rule Must Be Followed to Obtain an Efficient Allocation

question 26

Multiple Choice

What rule must be followed to obtain an efficient allocation of resources?

• A)P = AC.
• B)P = MC.
• C)P = AR.
• D)MR = AC.

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Definitions:

Vesting

A provision in employer-provided retirement plans that gives workers the right to a pension after a specified number of years of service.

Pension Benefits

Payments made to employees after retirement, based on years of service and salary history, as part of a retirement plan.

Medical Insurance

A type of insurance coverage that pays for medical and surgical expenses incurred by the insured, typically offered as part of employment benefits.

Federal Government

The national government of a federal country, which holds the authority over matters that affect the country as a whole.