When a Competitive Market Achieves Allocative Efficiency, It Implies That

question 150

Multiple Choice

When a competitive market achieves allocative efficiency, it implies that

• A)the marginal benefit of having the product is greater than the marginal cost.
• B)the buyers are getting the maximum consumer surplus from the product.
• C)the combined consumer and producer surplus is maximized.
• D)the quantity demanded is lower than the quantity supplied.