Which of the Following Conditions Holds in Economically Efficient Competitive

question 111

Multiple Choice

Which of the following conditions holds in economically efficient competitive market equilibrium?

• A)The deadweight loss is positive but at a minimum.
• B)Producer and consumer surplus are exactly equal in size.
• C)There are no positive and no negative external effects from consumption and production.
• D)The marginal benefit of the last unit produced and consumed is maximised.

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Definitions:

Considerable Emphasis

Significant importance or stress placed on a particular aspect or detail.

State

An organized political community under one government, recognized as sovereign or independent.

Inequality

A situation where resources, opportunities, and rights are distributed unevenly amongst individuals or groups in a society.

Regulate Inequality

Efforts or policies aimed at managing or reducing the disparities in wealth, resources, or opportunities among members of a society.