When Is Economic Efficiency Achieved in a Competitive Market

question 90

Multiple Choice

When is economic efficiency achieved in a competitive market?

• A)when economic surplus is equal to consumer surplus.
• B)when consumers and producers are satisfied.
• C)when the marginal benefit equals the marginal cost from the last unit sold.
• D)when producer surplus equals the total amount firms receive from consumers minus the cost of production.

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Definitions:

In-progress Inventory

Items that are currently being manufactured or are in the process of being transformed from raw materials to finished goods.

Finished Goods Inventory

An end item ready to be sold, but still an asset on the company’s books.

Raw Materials

Basic materials that are processed or refined to create a final product in manufacturing.

Monthly Sales

The total revenue or number of units sold by a business during a calendar month.