Economic Efficiency in a Competitive Market Is Achieved When

question 171

Multiple Choice

Economic efficiency in a competitive market is achieved when

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

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Definitions:

Difference

A term that refers to the disparity or distinction between two or more elements, items, or phenomena.

Marginal Utility

Additional gratification or utility that comes from consuming one more unit of a product or service.

Consumer Behavior

The study of how individuals, groups, and organizations select, buy, use, and dispose of goods, services, ideas, or experiences.

Assumptions

Pre-established beliefs or statements taken as true without proof, used as foundational elements in theories, models, and analyses to simplify complex realities.