If a Market Produces a Level of Output Below the Competitive

question 111

Multiple Choice

If a market produces a level of output below the competitive equilibrium,then

• A) social welfare is not maximized.
• B) consumer surplus might still be maximized.
• C) the actual price will be below the equilibrium price.
• D) social welfare might still be enhanced if a price ceiling keeps price below the competitive price.

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Definitions:

Organizational Politics

Organizational politics is the management of influence to obtain ends not sanctioned by the organization or to obtain sanctioned ends through nonsanctioned means and the art of creative compromise among competing interests.

Self-serving

Behaviors or attitudes focused on one's own advantage, often at the expense of others or ethical principles.

Social Capital

A capacity to get things done due to relationships with other people.

Intellectual Assets

Intellectual assets are valuable intangible resources of an organization, such as patents, trademarks, and employee expertise.