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If a Market Is in Equilibrium, Then It Is Impossible

question 213

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If a market is in equilibrium, then it is impossible for a social planner to raise economic welfare by increasing or decreasing the quantity of the good.


Definitions:

Target Profit

The desired profit figure set by a business, which guides pricing, production, and marketing decisions.

Unit Sales

The total quantity of an item or product sold in a particular period.

Contribution Margin Ratio

The percentage of each sales dollar that remains after variable costs have been deducted, contributing towards covering fixed costs and generating profit.

Net Operating Income

The total profit of a company after operating expenses are subtracted from gross profit but before income taxes and interest are deducted.

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