Which of the Following Statements Is True

question 32

Multiple Choice

Which of the following statements is true?

• A) An unattainable point is inefficient.
• B) An efficient point may or may not be attainable.
• C) An inefficient point must be unattainable.
• D) An efficient point must be attainable.
• E) An attainable point must be efficient.

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Definitions:

Consumer Surplus

The variance in the sum total consumers are enthusiastic and financially able to spend on a good or service versus what they end up paying.

Cost of Production

The complete cost involved in producing a product or offering a service, which encompasses the price of raw materials, workforce expenses, and overhead charges.

Producer Surplus

The difference between the amount producers are willing to accept for a good or service and the amount they actually receive.

Market Price

The amount of money for which a good or service is offered, sold, or bought in the market.