A Result of Welfare Economics Is That the Equilibrium Price

question 218

Multiple Choice

A result of welfare economics is that the equilibrium price of a product is considered to be the best price because it

• A)maximizes both the total revenue for firms and the quantity supplied of the product.
• B)maximizes the combined welfare of buyers and sellers.
• C)minimizes costs and maximizes output.
• D)minimizes the level of welfare payments.

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Definitions:

Oxygen

A chemical element with symbol O and atomic number 8, essential for most life forms on Earth as a component of water and air.

Fluorine

A chemical element with symbol F and atomic number 9, known for being the lightest halogen and having extremely reactive and electronegative properties.

Magnesium

A lightweight, silvery-white, highly reactive metal used in alloys, fireworks, and as a reducing agent in the production of uranium and other metals.

Chlorine

A greenish-yellow, diatomic gas that is a member of the halogen group, highly reactive and used as a disinfectant and in the production of numerous chemicals.