Economic Efficiency Is Achieved When There Is a Market Outcome

question 56

Multiple Choice

Economic efficiency is achieved when there is a market outcome in which the marginal benefit to consumers of the last unit produced is equal to its marginal cost of production and

• A)economic surplus plus consumer surplus equals producer surplus.
• B)consumer surplus plus producer surplus is maximized.
• C)economic surplus is minimized.
• D)the difference between consumer surplus and producer surplus is maximized.

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Definitions:

Elastic Demand

Refers to a situation where the quantity demanded of a good or service significantly changes in response to changes in its price.

Single Price

A market condition where all units of a homogeneous good or service are sold at the same price to all buyers.

Price Discrimination

A pricing strategy where a seller charges different prices for the same product or service to different consumers, based on factors like demand, market conditions, or consumer attributes.

Physically Separated

Refers to the distinct division or distance between entities or areas, often implying a lack of direct interaction or connection.