Which of the Following Statements Is False

question 139

Multiple Choice

Which of the following statements is false?

• A)The sum of producer and consumer surplus is maximized when equilibrium is achieved.
• B)Any successful effort to keep price from going to equilibrium decreases the sum of producer and consumer surplus in a market.
• C)The sum of producer and consumer surplus is maximized when Pareto efficiency is achieved.
• D)Consumer surplus is at its maximum when the price of a product is zero.
• E)Producer surplus is all that is maximized when Pareto efficiency is achieved.

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Definitions:

Free Cash Flow

The amount of cash generated by a business after accounting for capital expenditures, essential for maintaining or expanding assets.

Operating Activities

Transactions and events that relate to the principal revenue-generating activities of the company.

Financing Activity

Transactions that result in changes to the size and composition of the equity capital or borrowings of a company, as reported in the cash flow statement.

Financing Activities

Transactions and events that involve changes in the size and composition of the equity and borrowings of a company.