If There Is No Other Allocation That Will Allow the Economy

question 11

Multiple Choice

If there is no other allocation that will allow the economy to produce more of one good without producing less of another good, then a given allocation

• A) produces extra-normal profits
• B) is Pareto efficient
• C) Both answers are correct

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Definitions:

Course of Performance

An aspect of contract law, referring to the conduct between parties in the performance of a contractual agreement, which can help interpret the contract's terms.

Executed Contract

A contract that has been completely performed by both parties.

Contractual Obligation

A duty or responsibility that is legally binding under the terms of a contract.

Obvious Terms

Conditions or elements in an agreement or contract that are clear and unmistakable to all parties involved, often not needing explicit statement or detailed explanation.