When Is Economic Efficiency Achieved in a Competitive Market

question 90

Multiple Choice

When is economic efficiency achieved in a competitive market?

• A)when economic surplus is equal to consumer surplus.
• B)when consumers and producers are satisfied.
• C)when the marginal benefit equals the marginal cost from the last unit sold.
• D)when producer surplus equals the total amount firms receive from consumers minus the cost of production.

---

Definitions:

Conservative Agenda

A political ideology focusing on maintaining traditional values, limited government, and free market principles.

Ronald Reagan

The 40th President of the United States (1981-1989), known for his conservative policies and role in ending the Cold War.

Tax Reform Act

Legislation aimed at altering tax policies, often seeking to adjust rates, broaden the tax base, or simplify the tax code. Specific acts by this name have been enacted in various years in different countries.

Tax Shelters

Financial arrangements made to minimize or avoid taxes through legal means.