Consider the Following Table That Shows the Number of Trucks

question 122

Multiple Choice

Consider the following table that shows the number of trucks owned by a delivery firm and the corresponding number of deliveries made. Use the table to answer the following questions.
-Diminishing returns set in after the ________ truck is purchased.

• A) first
• B) second
• C) third
• D) fourth
• E) fifth

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Definitions:

Economic Efficiency

A situation where resources are utilized in the most optimal manner, producing the desired output with minimum waste or expense.

Producer Surplus

The difference between what producers are willing to accept for a good versus what they actually receive.

Consumer Surplus

Consumer surplus is the difference between the total amount consumers are willing and able to pay for a good or service and the total amount they actually pay.

Property Rights

The legal rights to own, use, and dispose of assets including real estate, personal possessions, and intellectual property.