Which of the Following Conditions Holds in an Economically Efficient

question 50

Multiple Choice

Which of the following conditions holds in an economically efficient competitive market equilibrium?

• A) The deadweight loss is positive but at a minimum.
• B) Producer and consumer surplus are exactly equal in size.
• C) There are no positive and no negative external effects from consumption and production.
• D) The marginal benefit of the last unit produced and consumed is maximised.

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Definitions:

Mixed Strategy Equilibrium

A solution concept in game theory where players choose a probability distribution over possible actions, ensuring no player can benefit from changing their strategy unilaterally.

Company Policy

A set of principles, rules, or guidelines formulated or adopted by a company to achieve its long-term goals and manage its internal affairs.

Money Value

The purchasing power of money, which can be affected by inflation and the general price level of goods and services.

Arthur

In the context of economics, Arthur does not directly relate to a specific key term; in other contexts, it could refer to a person's name or a historical figure.