MC and MU Are Set Equal to One Another in a Market

question 177

Multiple Choice

MC and MU are set equal to one another in a market economy because

• A)producers and consumers are free to communicate with one another.
• B)producers and consumers both respond to the same price.
• C)consumers must accept the prices set by producers.
• D)producers must accept the price set by consumers.

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Definitions:

Legal Rights

Refers to the entitlements granted by legal systems or societal norms to individuals or entities, encompassing freedoms, privileges, and protections under law.

Clearing

The process of reconciling purchases and sales of various options, futures, or securities, as well as the direct transfer of funds from one financial institution to another.

Refuse To Honor

The act of not accepting, acknowledging, or fulfilling an agreement, request, or instruction.

Enough Money

Implies having sufficient funds to meet needs, obligations, or desired goals without financial strain.