For Allocative Efficiency to Hold

question 272

Multiple Choice

For allocative efficiency to hold

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

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Definitions:

Reverse Innovation

A strategy where goods or services are developed first for emerging markets, and then adapted for more developed ones.

Diverse Settings

Various environments or situations that are distinct in character, culture, or composition.

Innovation Process

The sequence of activities that an individual or organization undertakes to conceive, develop, and bring to market new products or services.

Scaling

The process of increasing or decreasing the size, production capacity, or operational capabilities of an organization to handle growing or shrinking demand.