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:

Scale Effects

Economic concept that refers to the cost advantages that a business can achieve due to the expansion of its production size.

Market Share Effects

Describes the impact changes in a company's market share have on its competitive position and profitability.

Ethnographies

A qualitative research method involving the systematic study of people and cultures from the insider's perspective, primarily through observation and interviews.

Interviews

A qualitative research method involving direct, face-to-face, or virtual conversation to gather information or opinions.