Which of the Following Is True in a Competitive Market

question 1

Multiple Choice

Which of the following is true in a competitive market equilibrium?

• A) Total consumer surplus equals total producer surplus.
• B) Marginal benefit and marginal cost are maximised.
• C) Consumers and producers benefit equally.
• D) The marginal benefit equals the marginal cost of the last unit sold.

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Definitions:

Competing Corporations

Companies operating in the same industry, market, or field that vie for the same customer base and resources.

Robinson-Patman Act

Legislation aimed at eliminating discrimination in pricing and promotional allowances among purchasers of the same product.

Cost Justification

The process of demonstrating that a proposed expenditure or investment is worthwhile based on the anticipated benefits exceeding the costs.

Quantity Discounts

Discounts offered to buyers for purchasing large volumes of goods, encouraging bulk purchasing.