Choose the Correct Statement

question 109

Multiple Choice

Choose the correct statement.

• A)Resources are used efficiently when marginal social benefit equals marginal social cost.
• B)Competitive equilibrium achieves an efficient outcome.
• C)Competitive equilibrium maximizes the gains from trade.
• D)When firms in perfect competition are away from long-run equilibrium, either entry or exit is taking place and the market is still efficient.
• E)All of the above

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Definitions:

Auction Without Reserve

An auction in which the item for sale will be sold regardless of price, with no minimum bid set.

Bid Revocation

The act of withdrawing a bid before it is accepted, which can typically be done as long as the withdrawal does not violate the terms of the bidding process.

Negotiation

Negotiation is a dialogue between two or more parties aimed at reaching a mutually beneficial outcome or resolving a disagreement.

Valid Contract

A legally binding agreement between parties that meets all requisite legal elements, such as offer, acceptance, consideration, and mutual consent.