Which of the Following Conditions Does Not Need to Occur

question 24

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:

Auditory Stimulus

A sensory input related to hearing, such as sounds or noises, that can elicit a response from an organism.

Facial Expression

The use of the facial muscles to convey emotion, information, or reactions.

Eyelids Lifted

The action of raising the upper eyelids, usually to widen the eyes, associated with increased alertness or surprise.

Mouth Corners

The outer points of the mouth where the upper and lower lips meet.