For Allocative Efficiency to Hold

question 37

Multiple Choice

For allocative efficiency to hold,

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

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Definitions:

Higher Power

A spiritual force believed to be greater than oneself, often associated with faith and recovery from addiction.

Acculturation

The process by which a person or group from one culture comes to adopt the practices and values of another culture while still maintaining their own cultural identity.

Assimilation

The process by which individuals or groups adopt the customs and attitudes of another culture, often losing aspects of their original culture in the process.

Individualization

The process or practice of treating each person as unique, with their own set of characteristics, needs, and preferences.