Which of the Following Is True

question 241

Multiple Choice

Which of the following is true?
i.Production efficiency occurs only when resources are used to produce the combination of goods that has the greatest value.
ii.Allocative efficiency occurs when marginal benefit equals marginal cost.
iii.A demand curve is a marginal cost curve.

• A) Only ii
• B) Only i
• C) Only iii
• D) i and ii
• E) ii and iii

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Definitions:

Posterior Probabilities

The probabilities that are computed after taking into account known or observed evidence, often used in Bayesian statistics.

Prior Probabilities

Prior probabilities are the initial estimations of the likelihood of an event, based on existing knowledge before any new evidence is taken into account.

Likelihood Probabilities

The probabilities that express the plausibility of different parameter values given a certain outcome.

Experimental Outcome

The result observed from conducting an experiment, which can be used to test hypotheses and theories.