When a Society Achieves Allocative Efficiency,it

question 70

Multiple Choice

When a society achieves allocative efficiency,it

• A) is not achieving production efficiency.
• B) is producing that combination of goods and services that society values most highly.
• C) might or it might not be producing at a point on society's PPF.
• D) is producing a combination of goods and services whose marginal cost exceeds their marginal benefit.
• E) is producing the combination of goods and services for which marginal benefit exceeds marginal cost by as much as possible.

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Definitions:

Net Realizable Value

The estimated selling price of goods or assets in the ordinary course of business minus any costs involved in the sale or disposal process.

Accounts Receivable Turnover

A financial ratio that measures how efficiently a company collects revenue from its credit sales by comparing net credit sales with the average accounts receivable.

Net Realizable Value

The estimated selling price of goods minus the cost of their sale or disposal.

Direct Write-off Method

A method of accounting for bad debts that charges the amount directly to expense when it is determined to be uncollectible.