Which of the Following Occurs When a Market Is Efficient

question 35

Multiple Choice

Which of the following occurs when a market is efficient?

• A) Consumer surplus equals producer surplus.
• B) Consumer surplus is as large as possible.
• C) Producer surplus is as large as possible.
• D) The sum of consumer surplus and producer surplus is maximized.
• E) The marginal benefit exceeds the marginal cost by as much as possible.

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Definitions:

Base

Substance that accepts hydrogen ions in water.

Buffer

Set of chemicals that can keep the pH of a solution stable by alternately donating and accepting ions that contribute to pH.

Solute

A substance dissolved in another substance, typically the component of a solution present in the lesser amount.

Double Covalent

A type of chemical bond where two pairs of electrons are shared between atoms, forming a stable molecule.