Allocative Efficiency Is Achieved in an Industry When Firms Supply

question 34

True/False

Allocative efficiency is achieved in an industry when firms supply those goods and services that provide consumers with a marginal benefit equal to the marginal cost of producing those goods and services.

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Definitions:

Behavior Therapy Technique

A range of treatments and strategies used to alter maladaptive behaviors and reinforce desirable ones.

Aversion Therapy

Form of behavioral therapy in which an undesirable behavior is paired with an aversive stimulus to reduce the frequency of the behavior.

Systematic Desensitization

A behavioral therapy technique used to reduce anxiety through gradual exposure to the feared object or situation, coupled with relaxation exercises.

Token Economy

The use of objects called tokens to reinforce behavior in which the tokens can be accumulated and exchanged for desired items or privileges.