If Marginal Benefit Is Equal to Marginal Cost, Then the

question 60

Multiple Choice

If marginal benefit is equal to marginal cost, then the

• A) producer surplus is equal to the consumer surplus.
• B) deadweight loss is more than zero but less than its maximum.
• C) market has squeezed out total surplus so that it equals zero.
• D) sum of producer surplus and consumer surplus is as large as possible.
• E) sum of producer surplus and consumer surplus equals zero.

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Definitions:

Interpersonal Feedback

The process of giving or receiving information about behaviors, attitudes, and perceptions between individuals to improve communication or performance.

Social Pressure

The influence exerted by society or a social group on individuals to conform to expected norms, behaviors, or attitudes.

Predicting Behaviour

The process of forecasting or estimating the future actions or reactions of individuals or groups based on various psychological, sociological, or environmental factors.

Consumer's Control

The degree of influence that consumers have over their purchasing decisions and interactions with the marketplace.