For Allocative Efficiency to Hold

question 272

Multiple Choice

For allocative efficiency to hold

• A)price must equal marginal revenue of the last unit sold.
• B)price must equal the marginal cost of the last unit produced.
• C)average variable cost is minimized in production.
• D)average total cost is minimized in production.

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Definitions:

Descriptive Approaches

Methods or strategies focused on describing and understanding phenomena rather than predicting or manipulating them.

Ethical Issues

Challenges or dilemmas that require individuals or organizations to consider moral principles in their decision-making processes.

Normative

Refers to standards or norms that dictate what actions or ideas are right and wrong, often applied in ethical, legal, and societal contexts.