When There Is Allocative Efficiency in a Purely Competitive Market

question 113

Multiple Choice

When there is allocative efficiency in a purely competitive market for a product, the minimum price producers are willing to accept is

• A) less than marginal benefit.
• B) greater than marginal cost.
• C) equal to the amount of efficiency or deadweight losses.
• D) equal to the maximum price consumers are willing to pay.

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Definitions:

Complex

Consisting of many different and connected parts, or a system that is not simple and may be difficult to understand.

Photosynthetic Organism

An organism that converts sunlight into chemical energy through the process of photosynthesis.

Specialized Cells

Cells that have developed specific characteristics and functions through the process of differentiation.

Multicellular

Organisms that consist of more than one cell, exhibiting cellular differentiation and specialization for various functions.