If There Is Allocative Efficiency in a Purely Competitive Market

question 28

Multiple Choice

If 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:

Hypothesis

A proposed explanation for a phenomenon, which can be tested through experimentation and observation.

P-value

A measure in statistical hypothesis testing representing the probability of obtaining test results at least as extreme as the ones observed during the test, assuming the null hypothesis is true.

Proportion

A part, share, or number considered in comparative relation to a whole.

Census Data

Detailed information gathered about a population, typically including demographics, employment status, and housing conditions, collected during a census.