If There Is Allocative Efficiency in a Purely Competitive Market

question 40

Multiple Choice

If there is allocative efficiency in a purely competitive market for a product, the maximum price consumers are willing to pay is

• A) less than marginal benefit.
• B) greater than marginal cost.
• C) equal to the amount of efficiency or deadweight losses.
• D) equal to the minimum price producers are willing to accept.

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Definitions:

Surgency

A personality trait characterized by high levels of energy, assertiveness, and sociability; often associated with leadership qualities.

Social Identity Theory

A theory stating that individuals derive part of their identity and self-esteem from the social groups to which they belong.

Self-concept

An individual's collection of beliefs about their own attributes, abilities, and characteristics.

Ego

The aspect of self that directs one’s thoughts and actions.