Perfect Competition Arises If the ________ Efficient Scale of a Single

question 270

Multiple Choice

Perfect competition arises if the ________ efficient scale of a single producer is ________ relative to the demand for the good or service.

• A) minimum; small
• B) minimum; large
• C) maximum; small
• D) maximum; large

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Definitions:

Consumer Surplus

The disparity between what consumers are prepared and able to spend for a product or service and the actual amount they end up paying.

Property Tax

A tax assessed on real estate by the local government, based on the property's value.

Elastic

Refers to the responsiveness of the quantity demanded or supplied of a good or service to a change in its price.

Excess Burden

The cost to society created by market inefficiency, which occurs when supply and demand are out of equilibrium.