In the Parable of the Cave, the Light on the Wall

question 58

Multiple Choice

In the parable of the cave, the light on the wall in front of the prisoners is

• A) Cast by the sun.
• B) Cast by a streetlamp.
• C) Cast by a fire.
• D) Not actually light.

---

Definitions:

Allocative Efficiency

An economic state where resources are allocated in a way that maximizes the net benefit to society.

ATC

Another term for Average Total Cost, it represents the per unit cost of production, calculated by dividing total production cost by the quantity of goods produced.

Profit-Maximizing

A firm's objective of adjusting outputs and pricing to achieve the highest possible profit.

Demand Schedule

A table that shows the quantity of a good or service that consumers are willing to buy at each price point.