Efficiency Occurs in a Market When

question 13

Multiple Choice

Efficiency occurs in a market when

• A) consumer surplus is greater than producer surplus.
• B) total revenue is maximised.
• C) consumer surplus is equal to producer surplus.
• D) the sum of consumer surplus and producer surplus is maximised.
• E) consumer surplus is less than producer surplus.

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Definitions:

Competitor's Product

A product or service that is offered by one or more companies operating in the same market as another company, serving as alternatives or substitutes.

Operating Cost

The expenses associated with running a business's core operations on a day-to-day basis.

Investment

The allocation of resources, such as capital or time, in expectation of generating future returns.

Required Return

The minimum return an investor expects to achieve by investing in a particular asset, taking into account its risk level.