If,at the Equilibrium Quantity in a Market,the Benefit of the Last

question 165

Multiple Choice

If,at the equilibrium quantity in a market,the benefit of the last unit produced just equals its marginal cost,_____

• A)each firm earns a positive economic profit.
• B)the market is said to have achieved productive efficiency.
• C)the market is said to have achieved allocative efficiency.
• D)the firms in the market are said to have achieved economies of scale.
• E)each firm in the market incurs an economic loss.

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Definitions:

Incentive Compensation

A form of payment designed to motivate and reward employees for exceeding specific performance goals.

Compensation

Payment or benefits provided to employees in exchange for their labor or services, including salaries, wages, and benefits packages.

Principal-agent Relationship

A dynamic between a principal, who delegates tasks, and an agent, who performs tasks on the principal's behalf, often leading to issues related to alignment of interests.

Decision Makers

Individuals or groups responsible for making choices that influence outcomes or the direction of a project, strategy, or organization.