In a Two-Good World,every Allocation Would Be Efficient Only If

question 23

Multiple Choice

In a two-good world,every allocation would be efficient only if:

• A)both individuals were identical.
• B)both individuals regard the two goods as perfect substitutes.
• C)both individuals were identical and regard the two goods as perfect complements.
• D)both individuals were identical and regard the two goods as perfect substitutes.

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Definitions:

Decreases Assets

Refers to any operation or transaction that results in a reduction of the value of assets owned by a business.

Account Receivable

Money owed to a company by customers who have purchased goods or services on credit.

Classified Revenue

Classified revenue involves organizing a company's revenue into distinct categories for detailed financial analysis and reporting.

Accounting Equation

The fundamental principle of accounting that states assets equal liabilities plus owner's equity.