Economic Inefficiency Exists When

question 99

Multiple Choice

Economic inefficiency exists when

• A) P = MR.
• B) P = MC.
• C) MR = MC.
• D) P > MC.

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Definitions:

Dependent Variable

In an experiment, it is the variable that is being tested and measured, expected to change as a result of manipulations to the independent variable.

Gustav Theodor Fechner

A German philosopher, physicist, and experimental psychologist, known as a founder of psychophysics, which quantifies the relationships between physical stimuli and the sensations and perceptions they affect.

Psychophysics

The branch of psychology that studies the relationships between physical stimuli and the sensations and perceptions they produce.

Psychological Sensation

The initial process of detecting and interpreting environmental stimuli through the senses.