Overallocation of Resources in an Industry Means That for the Last

question 2

Multiple Choice

overallocation of resources in an industry means that for the last unit produced,

• A)economic profit is negative but rising.
• B)society places a higher value on the resources required to produce the last unit than the value society places on consuming the last unit.
• C)the demand price for the last unit exceeds the marginal cost of producing the last unit.
• D)the marginal cost of production is falling.
• E)the average cost is falling.

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Definitions:

Correlation Coefficients

A numerical measure that represents the strength and direction of a linear relationship between two variables.

Relationship Between Variables

Refers to how variables are associated with each other, which can be positive, negative, or non-existent.

Absolute Value

The non-negative value of a number without regard to its sign, representing its distance from zero on the number line.

Negative Correlation

A relationship between two variables in which one variable increases as the other decreases.