What Must Be True for Allocative Efficiency to Hold

question 99

Multiple Choice

What must be true for allocative efficiency to hold?

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

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Definitions:

Phallic

Relating to the third stage of psychosexual development in Freud's theory, focusing on pleasure from the genital area.

Latency

The fourth stage in Freud’s psychosexual stages, occurring during the school years, in which the sexual feelings of the child are repressed while the child develops in other ways.

Psychosexual Stages

A Freudian theory that developmental stages beginning in childhood are focused on erogenous zones; failure to properly navigate these stages can affect adult personality.

Oral Stage

The first psychosexual development stage according to Freud, where the mouth is the primary focus of pleasure and exploration.