In a Competitive Market Equilibrium

question 88

Multiple Choice

In a competitive market equilibrium,

• A)total consumer surplus equals total producer surplus.
• B)marginal benefit and marginal cost are maximised.
• C)consumers and producers benefit equally.
• D)the marginal benefit equals the marginal cost of the last unit sold.

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Definitions:

Financing Activities

Transactions related to changes in the equity and debt of an organization, including issuing shares, paying dividends, and borrowing funds.

Indirect and Direct Methods

Two approaches for preparing cash flow statements: the direct method reports major classes of gross cash receipts and payments, while the indirect method adjusts net income for changes in balance sheet accounts to calculate cash from operating activities.

Direct Method

An approach in cost accounting that allocates service department costs directly to production departments without considering inter-service department flows.

Operating Expenses

Costs associated with the day-to-day operations of a business, excluding direct labor and materials.