Efficiency in a Market Occurs When the Production of the Good

question 338

Multiple Choice

Efficiency in a market occurs when the production of the good is such that

• A) marginal benefit exceeds marginal cost.
• B) marginal benefit equals marginal cost.
• C) marginal benefit is lower than marginal cost.
• D) the marginal cost stops increasing.
• E) marginal benefit exceeds marginal cost by the maximum amount possible.

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Definitions:

Real Wage

The purchasing power of wages, considering the effects of inflation; the amount of goods and services that can be bought with the wages.

Natural Capital

The world's stocks of natural assets which include geology, soil, air, water, and all living things.

Aptitude

A natural ability or skill that makes it easier for someone to learn certain types of tasks.

Gini Coefficient

A metric used to evaluate the extent of income difference within a community, moving from 0 for full equality to 1 for total inequality.