In a Competitive Market with No Externalities

question 31

Multiple Choice

In a competitive market with no externalities,

• A) at the equilibrium price, marginal benefit exceeds marginal cost.
• B) buyers cannot control the price, so the consumer surplus is zero.
• C) the consumer surplus is equal to zero because of competition.
• D) at the equilibrium price, marginal benefit equals marginal cost.
• E) at the equilibrium price, the total amount of consumer surplus equals the total amount of producer surplus.

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Definitions:

Primate Species

A group of mammals that includes humans, monkeys, and apes, characterized by large brains, forward-facing eyes, and opposable thumbs.

Delay Gratification

The aptitude for postponing instant satisfaction in order to obtain a reward at a subsequent time.

Goal Shielding

The cognitive process of protecting one's focus on achieving a goal by resisting distractions or competing goals.

Capacity to Delay Gratification

The competency to delay gratification by resisting the urge for an immediate prize in anticipation of a future reward.