The Central Planning Approach Proved ________ Because ________

question 132

Multiple Choice

The central planning approach proved ________ because ________.

• A) successful; central planners use state-of the-art military computers to efficiently allocate resources
• B) a failure; it was never given enough time to be successfully implemented in most countries
• C) successful; central planners, unlike CEOs, are not solely interested in maximizing profits and raising prices
• D) a failure; central planners lack information and incentives to allocate resources efficiently

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Definitions:

Average Total Cost (ATC)

Total cost divided by output.

Average Variable Cost (AVC)

Variable cost divided by output.

Average Total Cost

The total cost of production divided by the quantity produced, indicating the average cost per unit of output.

Average Variable Cost

Average variable cost (AVC) refers to the total variable costs per unit of output, covering expenses that change with the level of production, such as materials and labor.