Market Equilibrium Is Considered Efficient Because

question 66

Multiple Choice

Market equilibrium is considered efficient because:

• A)prices are low.
• B)the price consumers pay equals the profit producers receive.
• C)no more trades remain that benefit some without harming others.
• D)it assures that both the buyer and seller earn equal surplus.

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Definitions:

Steel Makers

Companies involved in the production of steel, an alloy of iron and carbon used widely in construction and manufacturing.

Attempted Monopolization

An action by a firm that involves anticompetitive conduct, the intent to gain monopoly power, and a “dangerous probability” of success in achieving monopoly power.

Antitrust Action

A lawsuit or legal move to challenge practices that restrain trade or competition in the market.

Sherman Act

A United States antitrust law passed in 1890 that prohibits monopolistic practices and promotes competition.