When a Perfectly Competitive, Well-Functioning Market Is Not in Equilibrium

question 15

Multiple Choice

When a perfectly competitive, well-functioning market is not in equilibrium:

• A) total surplus is not maximized.
• B) the market is not efficient.
• C) exchanges exist that make some better off without making someone else worse off.
• D) All of these are correct.

---

Definitions:

Proximity

The physical or psychological closeness or nearness of objects, individuals, or concepts to one another.

Gestalt Psychology

A theory of mind stating that psychological phenomena should be viewed as organized, structured wholes rather than the sum of their parts.

Stroboscopic Motion

The perception of continuous movement from a rapid sequence of still images, as seen in movies or animations.

Gestalt Psychologists

Psychologists who emphasize a holistic approach to psychology, focusing on how people integrate and organize perceptual information into meaningful wholes.