When a Competitive Market Achieves Allocative Efficiency, It Implies That

question 150

Multiple Choice

When a competitive market achieves allocative efficiency, it implies that

• A)the marginal benefit of having the product is greater than the marginal cost.
• B)the buyers are getting the maximum consumer surplus from the product.
• C)the combined consumer and producer surplus is maximized.
• D)the quantity demanded is lower than the quantity supplied.

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Definitions:

$2 A Day

A poverty threshold that delineates extreme poverty by the metric of living on less than $2 per day, adjusted for purchasing power parity.

Largest Poverty Group

refers to the demographic segment within a society that accounts for the largest share of individuals living below the poverty line.

Black Americans

A racial or ethnic group in the United States with African ancestry, known for its rich cultural heritage and history of civil rights struggle.

U.S. Poverty Rate

The proportion of the population living in households with income below the official poverty threshold as defined by the United States government.