In Perfect Competition, When Firms Are Maximizing Profits and Households

question 16

Multiple Choice

In perfect competition, when firms are maximizing profits and households are maximizing utility,

• A) Pareto optimality has been obtained.
• B) voluntary exchange can be used to make both firms and households better off.
• C) the outcome is inefficient.
• D) individual welfare is maximized, but social welfare is not.

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Definitions:

Autism Spectrum Disorder

A disorder of development that manifests through challenges in social interaction and communication, coupled with limited or repetitive thought and behavior patterns.

Intensive Behavioral Intervention

A comprehensive, individualized treatment strategy often used for children with autism, aimed at improving social, communicational, and learning skills through positive reinforcement.

Behavior Modification

Behavior modification is the use of empirical and methodical techniques to change behavior, typically using reinforcement or punishment.

Progressive Relaxation

A method of reducing stress and anxiety by tensing and then relaxing each muscle group in the body sequentially, promoting physical and mental relaxation.