Which of the Following Terms Describes the Situation in Which

question 241

Multiple Choice

Which of the following terms describes the situation in which all resources are able to move to to highest-valued uses via voluntary exchange?

• A) government intervention
• B) a market failure
• C) economic efficiency
• D) an externality

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Definitions:

Sales Required

The minimum sales needed to achieve a specific financial goal or to cover costs.

Variable Cost

Costs that vary directly with the level of production or output.

Break-even Point

The level of production or sales at which total revenues equals total expenses, with no net loss or gain.

Contribution Margins

The amount remaining from sales revenue after all variable expenses have been deducted, indicating how much contributes to covering fixed costs and generating profit.