Dr. Goldfinger decides to invest in companies which he believes can "improve the productivity and efficiency" of health care services. What would Dr. Goldfinger need to do to try to achieve allocative efficiency?
A) invest in companies that produce up to the point where the marginal cost of the last unit produced is zero
B) invest in companies that produce goods and services based on consumer preferences
C) invest in companies that produce goods and services at the lowest possible cost
D) invest in companies that fairly distribute their products and services
B
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Privatization refers to the process of hiring private management consultancy firms to manage state-owned enterprises.
a. true b. false
Which of the following is an example of adverse selection?
A) Overgrazing of a common piece of land B) Passengers travelling in a subway without a ticket C) A customer buying a defective appliance from a used goods market D) The generation of a harmful chemical during the production of a good