Underallocation of Resources in an Industry Means That for the Last

question 38

Multiple Choice

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

• A)economic profit is still 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 cost of producing the last unit exceeds its value to society.
• E)long-run average cost is falling.

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Definitions:

Pain Behaviors

Actions or reactions, such as grimacing or moaning, that express or communicate the presence of pain to observers.

Gate Control Theory

A theory suggesting that psychological factors play a role in the perception of pain; the brain can influence the pain signals that pass through the spinal cord's "gates."

Brain and Spinal Cord

Central components of the nervous system, with the brain responsible for processing information and the spinal cord for transmitting information to and from the brain.

Efferent Neurons

Nerve cells that carry neural impulses away from the central nervous system toward muscles or glands to trigger a response or action.