Economics 9708 · AS & A Level · Behavioural economics

Behavioural economics — practice question

What is one essential condition for achieving productive efficiency?

  • Athe removal of all externalities
  • Bthe elimination of all divergences between private and social costs
  • Cequality between price and marginal cost in all industries
  • Dthe production of a good at minimum average cost for a given output

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