The Equilibrium Price and Quantity in a Market Usually Produce

question 158

Multiple Choice

The equilibrium price and quantity in a market usually produce allocative efficiency because

• A) all consumers who want the good are satisfied.
• B) marginal benefit and marginal cost are equal at that point.
• C) equilibrium ensures an equitable distribution of output.
• D) the excess of goods produced at equilibrium guarantees that all will have enough.

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Definitions:

Peanuts

Often used informally to refer to a very small or insignificant amount of money.

Cashews

A type of nut known for its rich flavor and health benefits, often used in cooking and snacking.

Rate Of Trade-off

The rate at which one factor must be decreased to increase another factor while keeping overall utility constant, often used in economics to describe opportunity costs.

Producing

The act of creating, manufacturing, or generating goods or services.