What Is Maximised in a Competitive Market When Marginal Benefit

question 171

Multiple Choice

What is maximised in a competitive market when marginal benefit equals marginal cost?

• A)Deadweight loss
• B)Marginal profit
• C)Economic surplus
• D)Selling price

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Definitions:

Inventory Method

An inventory method is an accounting approach used to value and manage a company's stock of goods.

Lower Cost

A strategy or situation where expenses are reduced, often achieved through efficient operations, bulk purchasing, or other methods to decrease the cost base.

FIFO Inventory

An inventory valuation method that assumes the first items placed in inventory are the first sold, prioritizing older stock for cost of goods sold.

Net Realizable Value

The estimated selling price of goods minus the estimated costs of completion and the costs necessary to make the sale.