When Economic Efficiency Is Attained, It Implies All of the Following

question 108

Multiple Choice

When economic efficiency is attained, it implies all of the following, except:

• A) Per-unit cost of output produced is at minimum
• B) Allocative efficiency is achieved
• C) Total consumer and producer surplus is at a maximum
• D) The gap between marginal benefits and marginal costs of production is at maximum

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Definitions:

Actual Costs

The real costs incurred in the production of goods or services, including all direct and indirect expenses.

Inefficient Divisions

Parts of an organization that operate with lower productivity or effectiveness compared to expected standards.

Production Costs

The total expense involved in manufacturing goods, including raw materials, labor, and overhead costs.

General Rule

A principle or guideline that applies broadly and is considered to be of general use or value.