When There Is Allocative Efficiency in a Purely Competitive Market

question 113

Multiple Choice

When there is allocative efficiency in a purely competitive market for a product, the minimum price producers are willing to accept 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 maximum price consumers are willing to pay.

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Definitions:

Gift

A present or item given to someone willingly without expecting payment; often used in marketing as promotional material or a loyalty reward.

Referral

A prospect who has been referred to a salesperson by another person.

Introductory

Pertaining to the initial stage or beginning of something, such as an introductory offer or an introductory phase of a project.

Product

Any item or service that is created, offered, and made available to consumers to satisfy a want or need.