What Matters Most in Determining the Efficient Distribution of Production

question 38

Multiple Choice

What matters most in determining the efficient distribution of production over the world is

• A)​absolute advantage.
• B)​efficiency.
• C)​the stock of resources.
• D)​comparative advantage.

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Definitions:

Market Price

The actual selling price of a good or service in the marketplace at which buyers and sellers conduct transactions.

Total Revenue

The total income a firm receives from the sales of its products or services before any expenses are subtracted.

Economic Profit

The difference between a firm's total revenue and its opportunity costs, including both explicit and implicit costs.

Profit-maximizing

The process or strategy aiming to achieve the highest possible profit from business operations, often involving adjusting prices, output, and costs.