Which of the Following Statements Is True of the Efficiency

question 11

Multiple Choice

Which of the following statements is true of the efficiency frontier?

• A) To maximize its profitability, a firm should avoid a position that lies on the efficiency frontier.
• B) Not all positions on the efficiency frontier are viable.
• C) The efficiency frontier is a function of the cost and revenue of a product.
• D) Positions inside the frontier are more efficient than the positions that are located on the frontier.
• E) It is always concave in shape because of diminishing returns.

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Definitions:

Self-Fulfilling Prophecy

A prediction that causes itself to become true due to the behavior it inspires.

Communication Apprehension

Fear or anxiety associated with either real or anticipated communication with other people.

Looking-Glass Self

Concept that people learn who they are by their interactions with others, who reflect their self back to them.

Social Decentering

The cognitive ability to step outside one's own perspective and consider the thoughts, feelings, and motives of others.