What Must Be True for Productive Efficiency to Hold

question 232

Multiple Choice

What must be true for productive efficiency to hold?

• A)Price must equal the marginal cost of the last unit produced.
• B)Price must equal marginal revenue of the last unit sold.
• C)Average variable cost is minimised in production.
• D)Average total cost is minimised in production.

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Definitions:

Depreciated

The process of allocating the cost of a tangible or physical asset over its useful life, reflecting the decrease in value over time.

Domestic Haven

A safe and comfortable home environment that offers refuge from the stresses and demands of the outside world.

Self-Sufficient

The ability to satisfy one's own needs without reliance on others.

Vocational Institute

An educational establishment that provides specialized training and instruction in particular trades or careers.