When a Purely Competitive Market Is in Equilibrium

question 10

Multiple Choice

When a purely competitive market is in equilibrium:

• A) marginal cost equals marginal benefit.
• B) total cost equals total benefit.
• C) average cost equals average benefit.
• D) the sum of marginal cost and marginal benefit is maximized.

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Definitions:

Bipolar Disorder

A mental disorder that causes unusual shifts in mood, energy, activity levels, and the ability to carry out day-to-day tasks.

Depression

A psychiatric condition marked by a persistent feeling of sadness, lack of interest, and can lead to a variety of emotional and physical problems.

Mania

A mental state characterized by excessive excitement, energy, and euphoria, often seen in bipolar disorder.

Psychopathy

A personality disorder characterized by fearlessness; lack of empathy, guilt, and remorse; the use of deceit; and coldheartedness.