At a Competitive Equilibrium,if There Are No Taxes,subsidies,price Regulations,quantity Regulations,or

question 255

Multiple Choice

At a competitive equilibrium,if there are no taxes,subsidies,price regulations,quantity regulations,or externalities,

• A) the marginal benefit is greater than the marginal cost.
• B) resource use is efficient.
• C) the marginal benefit is less than the marginal cost.
• D) both the marginal benefit and the marginal cost of the last unit produced equal zero.
• E) the marginal benefit is greater than the marginal cost by as much as possible.

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Definitions:

Endowment Fund

A financial asset, often in the form of a donation to institutions, where the principal remains intact and only the investment income is used.

Monthly Grants

Financial assistance or funds distributed on a monthly basis to individuals, organizations, or projects.

Compounded Semi-Annually

A frequency of interest calculation where the interest is added to the principal every six months, resulting in earning interest on interest in the second half of the year.

Present Value

The current value of a future sum of money or stream of cash flows, given a specified rate of return.