To Achieve Allocative Efficiency, Firms

question 95

Multiple Choice

To achieve allocative efficiency, firms

• A)strive to minimize fixed costs
• B)strive to maximize profits
• C)produce at their minimum long-run average cost
• D)produce at their minimum long-run marginal cost
• E)produce the output consumers want most

---

Definitions:

Itemization

A method of pricing a funeral in which every item of service, facility, and transportation is listed with its related cost. This is the method mandated by the Federal Trade Commission.

Funeral Costs

The expenses associated with conducting a funeral service, including but not limited to, the casket, service fees, burial or cremation, and other associated costs.

Federal Trade Commission

A United States government agency established to prevent anticompetitive business practices, consumer deception, and unfair methods of competition.

Embalming

The process of preserving a body from decay, originally practiced by the Egyptians for preservation of bodies for the afterlife.