Which of the Following Conditions Does Not Need to Occur

question 64

Multiple Choice

Which of the following conditions does not need to occur for a market to achieve allocative efficiency?

• A) Consumers' maximum willingness to pay equals producers' minimum acceptable price for the last unit of output.
• B) The sum of producer and consumer surplus is maximized.
• C) The total revenue received by producers equals the total cost of production.
• D) The marginal benefit of the last unit produced equals the marginal cost of producing that unit.

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Definitions:

SAM

Usually refers to Serviceable Available Market, which is the portion of the market that can be captured or served by a company.

SOM

Abbreviation typically for "Share Of Market," referring to the percentage of a market controlled by a particular company, product, or brand.

Sanity Checks

Quick, basic tests or analyses run to ensure that assumptions or results are rational and feasible.

Market Size

The total volume or value of sales within a defined market over a specific period of time.