What Two Conditions Must Hold for a Competitive Market to Produce

question 197

Multiple Choice

What two conditions must hold for a competitive market to produce efficient outcomes?

• A) Demand curves must reflect all costs of production, and supply curves must reflect consumers' full willingness to pay.
• B) Supply curves must reflect all costs of production, and demand curves must reflect consumers' full willingness to pay.
• C) Firms must minimize production costs, and consumers must minimize total expenditures.
• D) Firms must maximize profits, and consumers must all pay prices equal to their maximum willingness to pay.

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Definitions:

External Stressors

Stressors that include anything from outside sources that causes you pain and discomfort.

Type A Personality

A temperament characterized by high competitiveness, self-imposed stress, impatience, and a constant sense of urgency.

Time Urgency

A feeling of being under pressure to complete tasks or make decisions in a limited timeframe.

Perfectionism

A personality trait characterized by striving for flawlessness and setting excessively high performance standards, accompanied by critical self-evaluations.