The Use of Resources in the Most Productive Way Possible

question 2

Multiple Choice

The use of resources in the most productive way possible to produce the goods and services that have the greatest total economic value to society is called:

• A)allocation optimization.
• B)efficiency.
• C)sustainability.
• D)economic quantity.

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Definitions:

Price Leadership

A form of oligopoly in which one dominant firm sets prices and all the smaller firms in the industry follow its pricing policy.

OPEC Cartel

An organization of oil-producing countries that coordinates and unifies petroleum policies to secure fair and stable prices for petroleum producers.

Predatory Pricing

A competitive strategy where a firm sets very low prices with the intention of driving competitors out of the market, or to prevent new entries.

Antitrust Laws

Regulations designed to promote competition and prevent monopolies by limiting the power of large corporations.