If the Price of Gas Is $2

question 42

True/False

If the price of gas is $2.35 per gallon then the cost of filling a car's tank with gas is directly proportional to the number of gallons of gas purchased.

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Definitions:

Economic Efficiency

A situation where the distribution of resources is designed to enhance the production of goods and services maximally.

Demand Conditions

Factors that affect consumer desire for a product or service, including income levels, tastes, and price of substitutes.

Cost Conditions

The various expenses that firms face related to the production and sale of goods or services, including raw materials, labor, and overhead costs.

Maximum Profit

The highest possible financial gain that a business can achieve from its operations.