Allocative Efficiency Is Achieved When

question 186

Multiple Choice

Allocative efficiency is achieved when

• A)goods and services are fairly distributed among consumers in an economy.
• B)firms produce the goods and services that consumers value most.
• C)firms produce goods and services at the lowest cost.
• D)there are no shortages or surpluses in the market.

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Definitions:

Dominant Strategy

In game theory, a strategy that is best for a player regardless of the strategies chosen by other players.

Advertise

The action or business of promoting and selling products or services, including market research and advertising.

Dominant Strategy

A strategy in game theory that provides the best payoff to a player, regardless of the opponent's moves.

Firm A

A placeholder name often used to denote a generic business entity in theoretical discussions or examples.