For Productive Efficiency to Hold

question 210

Multiple Choice

For productive efficiency to hold,

• A) price must equal the marginal cost of the last unit produced.
• B) price must equal marginal revenue of the last unit sold.
• C) average variable cost is minimised in production.
• D) average total cost is minimised in production.

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Definitions:

Uncertainty-Identity Theory

A social psychological theory suggesting that people join and identify with groups in order to reduce feelings of uncertainty about themselves and the world.

Social Identity Processes

The mechanisms through which individuals develop and maintain their social identity, including categorization, identification, and comparison with other groups.

Uncertainty

Uncertainty involves situations where the outcomes, probabilities, or implications are unclear, often leading to ambiguity and indecision.

Social Mobility Belief System

Belief that intergroup boundaries are permeable. Thus, it is possible for someone to pass from a lower-status into a higher-status group to improve social identity.