Which of the Following Describes a Difference Between Allocative Efficiency

question 226

Multiple Choice

Which of the following describes a difference between allocative efficiency and productive efficiency in a perfectly competitive market?

• A)Allocative efficiency is achieved only in the long run. Productive efficiency is achieved only in the short run.
• B)Allocative efficiency is achieved only in the long run. Productive efficiency is achieved in the short run and the long run.
• C)Allocative efficiency is achieved only in the short run. Productive efficiency is achieved only in the long run.
• D)Allocative efficiency is achieved in the short run and the long run. Productive efficiency is achieved only in the long run.

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Definitions:

Technologically-Inclined

Possessing a natural interest or skill in technology and the use of technological tools and processes.

Negligence

A failure to exercise the care that a reasonably prudent person would exercise in similar circumstances, leading to harm or damage.

Condition Subsequent

A condition under which the obligations of a contract will end.

Mutual Release

An agreement between two parties in which each side agrees to release the other from any possible claims or liabilities arising from a certain event or situation.