If 10 Units of a Good Are Sold at a Market

question 58

Multiple Choice

If 10 units of a good are sold at a market price of $40 each,then

• A)the value to some individual of the tenth unit of output is $40
• B)the economy is efficient
• C)selling an 11th unit would be a Pareto improvement
• D)a side payment of $40 is needed to ensure that the good is produced
• E)the market must be perfectly competitive

---

Definitions:

Buy a Unit

The action of purchasing a single item or measure of a product for a specified price.

Perceived Market Share

An estimate of the fraction of total market sales captured by a firm, based on the perception of consumers or the firm itself.

Actual Market Share

The real or actual percentage of a market controlled by a company or product, measured by sales volume or revenue.

Demand Curve

This reflects how the quantity demanded of a good or service varies with changes in its price, typically sloping downward from left to right.