Which of the Following Are True

question 153

Multiple Choice

Which of the following are true?

• A) Economists use the criterion of economic efficiency to judge the merit of alternative outcomes.
• B) Undertaking an economic action will be efficient if it produces more benefits than costs for the individuals of the economy.
• C) Undertaking an economic action will be inefficient if it produces more costs than benefits to the individuals.
• D) All of the above are true.

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Definitions:

Maximize Profits

A business objective aiming to achieve the highest possible financial gain from operations.

Economic Profit

The surplus remaining after total costs (both explicit and implicit) are deducted from total revenue, reflecting the true profitability of a firm.

ATC

Average Total Cost, which is the total cost divided by the quantity of output produced, reflecting the cost per unit of output.

Pure Monopolist

A market structure where a single seller dominates the market, with no rivals, supplying a unique product without close substitutes.