The Efficient Allocation of Resources Is Based on the Fact

question 12

Multiple Choice

The efficient allocation of resources is based on the fact that:

• A) firms devote the amount of resources to their good that consumers demand.
• B) P > MC.
• C) P < MC.
• D) economies of scale must exist.
• E) monopolists can cater for the entire market.

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Definitions:

Immigration

The process of permanently settling in a country that is not one's own.

Country A

A placeholder name often used in hypothetical economic models or discussions to refer to an unspecified country.

Business Income

The profit or loss generated from a company's activities after deducting expenses.

Emigration

The act of leaving one's resident country or region with the intent to settle elsewhere.