Which of the Following Statements Is Incorrect

question 10

Multiple Choice

Which of the following statements is incorrect?

• A)To be efficient, a competitive equilibrium must allocate goods to consumers so that no reallocation of the goods could make all consumers better off.
• B)To be efficient, a competitive equilibrium must allocate inputs among firms so that no reallocation of inputs would result in a higher output of all goods.
• C)To be efficient, a competitive equilibrium must satisfy substitution efficiency.
• D)To be efficient, a competitive equilibrium must satisfy output efficiency.

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Definitions:

Course Of The Business

The usual dealings and functions of a business within its chosen industry.

Contractual Relationship

A legally binding connection between two or more parties defined by a mutual agreement and enforceable by law.

Verbally

involves the use of spoken words to convey information, instructions, or ideas.

Implied

Suggested or understood without being directly expressed or explicitly stated.