Which of the Following Would Not Be Expected to Occur

question 38

Multiple Choice

Which of the following would not be expected to occur in a purely competitive market in long-run equilibrium?

• A)Consumer and producer surplus will be minimized.
• B)P = MC = lowest ATC.
• C)The maximum willingness to pay for the last unit equals the minimum acceptable price for that unit.
• D)We would expect all of these to occur in the long run in a purely competitive market.

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Definitions:

Price Level

A measure of the average prices of goods and services in an economy, indicating the cost of living or inflation rate.

Falling Prices

A situation in an economy where the prices of goods and services decrease over time.

Extraordinarily High Inflation

A situation where the rate of inflation becomes extremely high and uncontrollable, eroding purchasing power and destabilizing the economy.

Budget Deficit

The financial situation where government’s expenditures exceed its revenues within a specific time period, leading to borrowing or debt accumulation.