Which of the Following Conditions Holds in an Economically Efficient

question 50

Multiple Choice

Which of the following conditions holds in an economically efficient competitive market equilibrium?

• A) The deadweight loss is positive but at a minimum.
• B) Producer and consumer surplus are exactly equal in size.
• C) There are no positive and no negative external effects from consumption and production.
• D) The marginal benefit of the last unit produced and consumed is maximised.

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Definitions:

Equated

Considered as equivalent or comparable in value, significance, or effect.

Motherhood

The state or experience of having and raising a child.

Sexual Harassment

Unwelcome sexual advances, requests for sexual favors, and other verbal or physical harassment of a sexual nature, especially in the workplace or academic settings.

Adversarial Beliefs

Ideas or opinions in direct opposition or conflict with one another, often leading to dispute or contention.