The Flexible Budget Usually Shows

question 58

Multiple Choice

The flexible budget usually shows

• A)only fixed costs.
• B)only variable costs.
• C)fixed and variable costs separately.
• D)fixed and variable costs together.

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Definitions:

Feasible Allocation

In economics, it refers to the distribution of resources or goods in such a manner that it is possible given the available supply.

Second Welfare Theorem

An economic principle stating that under certain conditions, any efficient allocation of resources can be attained through a competitive equilibrium, assuming perfect markets and price flexibility.

Pareto Optimal

A distribution state of resources where trying to improve the status of one individual inevitably leads to the decline of another's.

Competitive Equilibrium

A state in a market-based economy where supply equals demand, and prices are stable, facilitating the optimal distribution of resources.