Which of the Following Would Not Be Expected to Occur

question 3

Multiple Choice

Which of the following would not be expected to occur in a purely competitive market in long-run equilibrium?

• A) Consumer and producer surplus will be minimized.
• B) P = MC = lowest ATC.
• C) The maximum willingness to pay for the last unit equals the minimum acceptable price for that unit.
• D) We would expect all of these to occur in the long run in a purely competitive market.

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Definitions:

Incidental Beneficiaries

Individuals or entities that unexpectedly benefit from a contract, despite not being directly involved in its formulations.

Creditor Beneficiary

A third party that benefits from a contract made between two other parties, especially regarding debt repayment.

Donee Beneficiary

In contract law, a person who benefits from the execution of a contract, though not one of the principle parties involved.

Incidental Beneficiary

A third party who benefits from a contract indirectly or unintentionally, without being a direct party to the agreement.