Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
Marginal cost analysis
B
Market competition
C
Total revenue maximization
D
Comparative advantage
Understanding the Answer
Let's break down why this is correct
Answer
Optimal resource allocation in microeconomics focuses on how resources are distributed to best meet consumer preferences and demands. Similarly, efficient production methods are about how businesses utilize their resources to produce goods at the lowest possible cost while maximizing output. For example, a bakery that uses the best ingredients and equipment will produce more bread with less waste, just as a market that distributes goods according to what people want will satisfy consumers better. Both concepts aim for effectiveness, whether in meeting consumer needs or in maximizing production efficiency. In essence, just as consumers benefit from optimal resource allocation, producers gain from adopting efficient production techniques.
Detailed Explanation
Marginal cost analysis helps businesses decide how much to produce. Other options are incorrect because Some might think competition is the main focus; Maximizing revenue sounds good, but it doesn't focus on costs.
Key Concepts
Optimization in Microeconomics
Resource Allocation
Production Efficiency
Topic
Optimization in Microeconomics
Difficulty
medium level question
Cognitive Level
understand
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