At the Output Level Defining Allocative Efficiency

question 225

Multiple Choice

At the output level defining allocative efficiency,

• A)the areas of consumer and producer surplus necessarily are equal.
• B)marginal benefit exceeds marginal cost by the greatest amount.
• C)consumer surplus exceeds producer surplus by the greatest amount.
• D)the maximum willingness to pay for the last unit of output equals the minimum acceptable price of that unit of output.

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Definitions:

Acetylene

A hydrocarbon and the simplest alkyne, with the formula C2H2, used as a fuel and a chemical building block.

Ethyne

A colorless hydrocarbon gas with the formula C2H2, known for its use in welding as acetylene.

Molecular Shape

The three-dimensional configuration of atoms within a molecule, determining many of the properties of the molecule, including reactivity and biological activity.

Phosphine

A toxic, flammable gas composed of phosphorus and hydrogen, used as an insecticide and in various industrial processes.