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:

Decision Rights

The authority to make choices regarding an organization's resources and commitments.

Legal Workplace

A professional setting that adheres to laws and regulations, typically involving legal practices or offices.

Incentive Pay

Additional compensation awarded to employees to motivate increased work performance or productivity.

Personal Days

Allocated days off provided by an employer for personal needs, separate from vacation or sick leave.