When There Is Allocative Efficiency in a Purely Competitive Market

question 16

Multiple Choice

When there is allocative efficiency in a purely competitive market for a product, the minimum price producers are willing to accept is

• A)less than marginal benefit.
• B)greater than marginal cost.
• C)equal to the amount of efficiency or deadweight losses.
• D)equal to the maximum price consumers are willing to pay.

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Definitions:

Weber Test

A tuning fork test used in audiology to assess hearing loss by determining whether sound is heard better in one ear than the other.

Vital Capacity

The total volume of air exchanged from forced inspiration and forced expiration.

Protanopia

A type of color blindness where there is a deficiency in red cone cells, making it difficult to distinguish red from green.

Tympanometry

A test that measures the movement of the eardrum in response to changes in air pressure, used to diagnose middle ear problems.