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If the Total Output of Some Industry Is Allocated Among

Question 2

Multiple Choice

If the total output of some industry is allocated among its individual firms in such a way that the total cost of producing the industry's output is minimized, the industry will achieve
1) full employment of resources;
2) productive efficiency;
3) allocative efficiency.


A) 1 only
B) 2 only
C) 3 only
D) both 1 and 3
E) both 2 and 3

Correct Answer:

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