Which of the Following Conditions Holds in an Economically Efficient

question 189

Multiple Choice

Which of the following conditions holds in an economically efficient competitive market equilibrium?

• A)The deadweight loss is positive but at a minimum.
• B)Producer and consumer surplus are exactly equal in size.
• C)There are no positive and no negative external effects from consumption and production.
• D)The marginal benefit of the last unit produced and consumed is maximized.

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Definitions:

Faulty Theories

Hypotheses or beliefs that have been proven wrong or lack sufficient evidence or validation.

Conflicts

Disagreements or disputes between individuals or groups that result from opposing or incompatible needs, desires, or interests.

Negative Results

Outcomes of an experiment or research that do not support the initial hypothesis or expected findings.

Groups

Collections of individuals who come together with common goals or interests, sharing interaction and often working towards collective objectives.