Which of the following best describes a situation of economic efficiency?
A) A firm produces to the point at which P = AVC, with MR < MC.
B) A firm produces to the point at which P = ATC, with MC < MR.
C) A firm produces to the point at which MR = AFC, with P = AVC.
D) A firm produces to the point at which MR = MC, with P = MC.
D
Economics
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The fair rules approach to fairness requires
A) that consumer surplus equal producer surplus. B) income transfers from rich to poor. C) property rights and voluntary exchange. D) that marginal cost equal marginal benefit. E) that consumer surplus exceed producer surplus because there are more consumers than producers.
Economics
Another term for an investment good is
a. interest b. savings c. capital d. rent e. production
Economics