When a Competitive Market Achieves Allocative Efficiency, It Implies That

question 35

Multiple Choice

When a competitive market achieves allocative efficiency, it implies that

• A) the marginal benefit of having the product is greater than the marginal cost.
• B) the buyers are getting the maximum consumer surplus from the product.
• C) the combined consumer and producer surplus is maximized.
• D) the quantity demanded is lower than the quantity supplied.

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Definitions:

GRPs

Gross Rating Points, a measure used in advertising to indicate the size of an ad campaign's audience across various media platforms.

CPM

An advertising metric that stands for "Cost Per Thousand" impressions, indicating the price of 1,000 advertisement views on a webpage.

Reach

The total number of different people or households exposed to an advertising campaign, message, or channel over a specific period.

Advertising Appeal

The underlying theme or idea used in an advertising campaign to attract the target audience’s interest and persuade them.