Which Statement Is True

question 5

Multiple Choice

Which statement is true?

• A)A competitive market maximizes total surplus as all the gains from trade are realized.
• B)In a competitive market all trade for which the MB is greater than or equal to the MC of production take place.
• C)If output was increased beyond the traded in a competitive market total surplus would decrease
• D)The competitive equilibrium outcome is Pareto efficient.
• E)All of the above.

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Definitions:

Attitude

Evaluation of a stimulus; can range from positive to negative.

Liked

The feeling of being appreciated or preferred by others, often measured by positive reactions in social and digital contexts.

Mere Exposure Effect

The psychological phenomenon whereby people tend to develop a preference for things merely because they are familiar with them.

Stimulus

Anything that can provoke a response or reaction from a biological organism or a system.