When a Market Is Efficient

question 88

Multiple Choice

When a market is efficient:

• A) any additional changes to make someone better off will make someone else worse off.
• B) a central planner must be involved.
• C) total surplus is zero.
• D) any additional changes to make someone better off will reduce the deadweight loss.

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Definitions:

Speculation

The act of trading in an asset, or conducting a financial transaction, that has a significant risk of losing most or all of the initial outlay, in the expectation of a substantial gain.

Customization

The process of modifying a product or service to meet individual customers’ preferences or specific requirements.

Pull Strategy

A marketing approach that aims to create demand for a product or service and entice customers to actively seek it out, often through promotions and awareness campaigns.

Push-Pull Strategy

A marketing technique that combines both push marketing strategies to create demand among retailers and pull marketing strategies to engage consumers directly.