When Economists Use the Word "Perfect," What Does It Indicate

question 14

Multiple Choice

When economists use the word "perfect," what does it indicate about the outcome of a market?

• A) Deadweight gains are maximized and marginal output is equal to zero.
• B) Consumer surplus is maximized and economic growth results from accelerated consumer spending.
• C) Producer surplus is minimized because society is harmed by excessive firm profits.
• D) Social welfare is maximized,resulting from an absence of deadweight loss.
• E) Producer surplus and consumer surplus are exactly equal.

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Definitions:

Selling Price

The price at which a product or service is offered for sale to a buyer.

Markup

The addition to the cost price of items to include overhead expenses and profits.

Total Job Cost

The complete cost associated with a specific job or project, including materials, labor, overhead, and any other costs directly related to the project.

Job M825

A specific designation for a job or project, often used within a job-order costing system to track costs and progress.