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:

Dalton's Law

A principle stating that the total pressure exerted by a mixture of gases is equal to the sum of the pressures that each individual gas would exert if it were present alone.

Gas Movement

The diffusion or transportation of gas molecules from an area of higher concentration to an area of lower concentration.

Alveolar Ventilation

The process of exchanging gases between the alveoli in the lungs and the external environment, primarily involving oxygen intake and carbon dioxide expulsion.

Gas Exchange

The biological process by which organisms exchange oxygen and carbon dioxide with their environment, crucial for respiration.