Which of the Following Is True

question 131

Multiple Choice

Which of the following is true?
i.Production efficiency occurs only when resources are used to produce the combination of goods that has the greatest value.
ii.Allocative efficiency occurs when marginal benefit equals marginal cost.
iii.A demand curve is a marginal cost curve.

• A) only ii
• B) only i
• C) only iii
• D) i and ii
• E) ii and iii

---

Definitions:

Mutual Interdependence

A situation in which the actions of one party significantly affect the outcomes for other parties, often seen in oligopolistic markets.

Price-Output Policies

Strategies implemented by firms or governments to regulate prices and output levels in a market.

Perfectly Elastic

Describes a situation where the quantity demanded or supplied responds infinitely to changes in price.

Demand Schedule

A table listing various quantities of a good or service that consumers are willing to purchase at different price levels, illustrating the relationship between price and quantity demanded.