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:

Nonemployee Agent

A nonemployee agent is an individual or entity that acts on behalf of another, without being on their formal payroll or considered an employee.

Principal

The main party to a transaction, contract, or financial instrument who has the primary interest and rights.

Negligent And Intentional Acts

Legal terms referring to actions causing harm or damage, with negligence lacking intent and intentional acts being deliberate.

Respondeat Superior

A legal doctrine that holds an employer or principal legally responsible for the wrongful actions of an employee or agent, if such actions occur within the scope of employment or agency.