Suppose That a Perfectly Competitive Market Is in Equilibrium

question 55

Multiple Choice

Suppose that a perfectly competitive market is in equilibrium.Then,

• A)the equilibrium quantity provides the maximum possible benefit to buyers
• B)the equilibrium quantity provides the maximum possible benefit to buyers and sellers combined
• C)total (producer + consumer)surplus is equal to price x quantity.
• D)an additional unit,if produced,would produce a benefit that exceeds its cost of production
• E)an additional unit could be produced at a cost to some producer that is less than the benefit to some consumer

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Definitions:

World Equity Benchmark Shares

Exchange-traded funds that aim to provide investment results that, before fees and expenses, correspond to the price and yield performance of specific international equity indexes.

ADRs

American Depositary Receipts, a way for investors to own shares in foreign companies, where the shares are held by a US financial institution overseas and traded on American exchanges.

WEBS

Exchange-traded funds that track international stock market indices, allowing investors to diversify their portfolios globally.

Derivative Securities

Financial instruments whose value is derived from the value of other, underlying assets.