If a Market Is in Equilibrium, Then We Know That

question 141

Multiple Choice

If a market is in equilibrium, then we know that price equals marginal cost because

• A)the market demand curve reflects marginal cost.
• B)marginal cost never changes.
• C)the market supply curve reflects marginal cost.
• D)every firm has the same costs.
• E)firms are required by law to equate marginal cost to price.

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Definitions:

Ownership Utility

The value or benefit that comes from owning a product or service, above and beyond its functionality or use.

Place Utility

The value added to products by having them available at a location where they are needed or wanted by consumers.

Time

A continuous, measurable quantity in which events occur in a sequence from the past through the present to the future.

Sales Contract

A legally binding agreement between a buyer and seller which outlines the terms of sale for goods or services.