When a Competitive Market Achieves Allocative Efficiency, It Implies That

question 150

Multiple Choice

When a competitive market achieves allocative efficiency, it implies that

• A)the marginal benefit of having the product is greater than the marginal cost.
• B)the buyers are getting the maximum consumer surplus from the product.
• C)the combined consumer and producer surplus is maximized.
• D)the quantity demanded is lower than the quantity supplied.

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Definitions:

Future Contact

The anticipation or arrangement of an interaction or meeting that will occur at a later date.

Social Script

A guide or schema for behavior in specific social situations, indicating the appropriate sequences of events and actions.

Culturally Modeled Guides

Frameworks or patterns socially and culturally established for influencing behavior, thoughts, and values in a given society.

Mirror Image

A reflected duplication of an object that appears almost identical but is reversed in the direction perpendicular to the mirror surface.