If a Market Is Such That, at the Market Equilibrium

question 67

Multiple Choice

If a market is such that, at the market equilibrium quantity, the benefit of the last unit produced just equals its marginal cost

• A)it has earned a positive economic profit
• B)it has achieved productive efficiency
• C)it has achieved allocative efficiency
• D)it has achieved economies of scale
• E)there are further trades than can increase producer surplus

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Definitions:

Unconditioned Response

An Unconditioned Response is an automatic, natural reaction to an unconditioned stimulus, not learned through previous experience.

Blinking

A rapid, involuntary action of the eyelids that helps to lubricate and protect the eyes.

Conditioned Stimulus

A previously neutral stimulus that, after becoming associated with an unconditioned stimulus, eventually comes to trigger a conditioned response.

Unconditioned Stimulus

In behavioral psychology, a stimulus that naturally triggers a response without any need for prior learning.