An Economy Is Operating with Optimum Efficiency If

question 126

Multiple Choice

An economy is operating with optimum efficiency if

• A)the price of the product is greater than marginal cost.
• B)the production of more of commodity A entails the production of less of commodity B.
• C)marginal cost of output is greater than marginal utility of output.
• D)an increase in output would result in a decrease in average cost per unit.

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Definitions:

Common Stock

Equity ownership in a corporation, giving holders voting rights and a share in the company's profits through dividends.

Retained Earnings

Profits that a company has earned to date, less any dividends or other distributions paid to investors.

Economic Resource

A resource with the ability to produce economic benefits for its holder, typically assets owned by an individual or entity.