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.

---

Definitions:

National Security

National Security involves the protection and preservation of a nation's safety, sovereignty, and interests against threats and aggression.

Trade Secrets

are a type of intellectual property consisting of formulas, practices, processes, designs, instruments, patterns, or compilations of information that have economic value because they are not generally known or readily ascertainable.

Autopsy Report

A detailed document summarizing the findings from a post-mortem examination, including cause of death and any other relevant medical observations.

Notary Public's Seal

An official stamp or seal used by a notary public to notarize documents, certifying their authenticity and the signer's identity.