When a Perfectly Competitive Market Is in Equilibrium

question 76

Multiple Choice

When a perfectly competitive market is in equilibrium,:

• A)consumer and producer surplus are maximized.
• B)price is maximized.
• C)quantity is maximized.
• D)deadweight loss is positive.

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Definitions:

Exporting Goods

The act of sending goods or services produced in one country to another country for sale or trade.

U.S. Companies

Businesses that are registered, operate, or are headquartered in the United States.

Business Failure

The cessation of operations and the closing of a business due to its inability to make a profit or cover its expenses, leading to financial losses for owners and investors.

Business Termination

When a business ceases operation for any reason.