Which of the Following Would Not Be Expected to Occur

question 94

Multiple Choice

Which of the following would not be expected to occur in a purely competitive market in long-run equilibrium?

• A)Consumer and producer surplus will be minimized.
• B)P = MC = lowest ATC.
• C)The maximum willingness to pay for the last unit equals the minimum acceptable price for that unit.
• D)We would expect all of these to occur in the long run in a purely competitive market.

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Definitions:

Margin Lost

The reduction in potential earnings or profit due to inefficiencies, increased costs, or missed opportunities.

Stockout

A situation where inventory is exhausted, and a product is unavailable for sale or delivery, potentially leading to lost sales and customer dissatisfaction.

Cost of Understocking

The financial loss or missed opportunity cost incurred when inventory levels are too low to meet demand.

Holding Cost

The expenses associated with storing unsold goods or materials, including warehousing, insurance, depreciation, and opportunity costs.