When Economists Say That Market Equilibrium Is Consistent with Economic

question 78

Multiple Choice

When economists say that market equilibrium is consistent with economic efficiency, they mean

• A) the total gains from trade (the combined area of producer and consumer surplus) are smaller than potentially could be the case at a different price and quantity.
• B) all units creating more benefit than cost have been produced.
• C) some units have been produced that cost more than the benefits they create.
• D) consumers and producers have made decisions without properly taking into account the market price.

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Definitions:

Real Power

The actual effectiveness or influence that an entity or individual can exert, differing from nominal or perceived power.

Array

A data structure that stores a fixed-size sequential collection of elements of the same type, allowing for indexed access to its elements.

Lowercase

Referring to the smaller form of letters in certain alphabets, not capitalized.