Which Assumption(s) Is (Are) Necessary for an Efficient Allocation of Resources

question 173

Multiple Choice

Which assumption(s) is (are) necessary for an efficient allocation of resources among firms?

• A) Factor markets are open and competitive.
• B) All firms pay the same prices for inputs.
• C) Firms behave so as to maximize their profits.
• D) All of the above are correct.

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Definitions:

Goal Fulfillment

The achievement of predefined objectives, personal aspirations, or targets, often resulting in satisfaction or a sense of accomplishment.

Self-Actualization Needs

The highest level in Maslow's hierarchy of needs, representing the fulfillment of personal potential and self-realization.

Consumer Involvement

Refers to the degree of interest and engagement a consumer has with a product or service, influencing their purchasing decisions.

Novel Stimuli

New or unfamiliar objects, events, or situations that attract attention and may elicit responses from an individual or a system.