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:

Vertical Integration

A strategy where a company expands its business operations into different steps on the same production path, such as when a manufacturer owns its supplier and/or distributor.

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A historically significant brand that played a key role in the development and mass production of sewing machines, changing the textile industry.

Indian Lands

Territories inhabited or historically owned by indigenous peoples of the Americas prior to European colonization and often the subject of conflict and negotiation thereafter.

Late Nineteenth Century

Refers to the period from around 1870 to 1900, marked by significant industrial, social, and political changes worldwide.