At a Competitive Equilibrium, If There Are No Taxes, Subsidies

question 3

Multiple Choice

At a competitive equilibrium, if there are no taxes, subsidies, price regulations, quantity regulations, or externalities,

• A) both the marginal benefit and the marginal cost of the last unit produced equal zero.
• B) the marginal benefit is less than the marginal cost.
• C) the marginal benefit is greater than the marginal cost.
• D) the marginal benefit is greater than the marginal cost by as much as possible.
• E) resource use is efficient.