An Allocation of Resources Is Technically Efficient If

question 18

Multiple Choice

An allocation of resources is technically efficient if:

• A)it is impossible to increase the output of a particular good.
• B)it is possible to increase the output of all goods.
• C)it is impossible to increase the output of one good without cutting back on the production of something else.
• D)it is possible to increase the output of one good.

Understand the concept of price discrimination and its different forms.

Identify conditions under which price discrimination is legal and ethical.

Analyze the impacts of the Robinson-Patman act on pricing strategies.

Differentiate between direct and indirect price discrimination.

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Definitions:

Elastic

A term describing a situation where the demand or supply of a good or service changes significantly when its price changes.

Higher Taxes

Increased rates or amounts of taxes imposed by governments on individuals, corporations, or transactions.

Inelastic

Inelastic refers to a situation in which the quantity demanded or supplied of a good or service is relatively unresponsive to price changes.

Quantity Demanded

The total amount of a good or service that consumers are willing to purchase at a specific price level, at a given point in time.