Choose the Statement That Is Incorrect

question 114

Multiple Choice

Choose the statement that is incorrect.

• A)Resources are used efficiently when marginal social benefit equals marginal social cost.
• B)Competitive equilibrium achieves an efficient outcome.
• C)Competitive equilibrium maximizes the gains from trade.
• D)When firms in perfect competition are away from long-run equilibrium,either entry or exit is taking place and the market is still efficient.
• E)Producer surplus is maximized at the competitive equilibrium.

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Definitions:

Municipal Reporting

The process of preparing and disclosing financial and other information by municipalities, guided by specific regulatory requirements.

Non-Financial Assets

Assets not primarily held for financial transactions but for their physical attributes or rights, such as property, plant, and equipment.

Debt Payment

The act of paying back money borrowed from lenders, which can include both principal and interest components.

Tangible Capital Assets

Physical assets owned by a firm that are used in its operations over several years, including buildings, machinery, vehicles, and equipment.