When the Price of a Good Equals the Equilibrium Price

question 119

Multiple Choice

When the price of a good equals the equilibrium price:

• A) there will still be some wasted resources.
• B) gains from trade are minimized.
• C) opportunity cost is minimized.
• D) there are no unexploited gains from trade.

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Definitions:

Imperfectly Competitive Market

A market structure where individual sellers have some control over the price of their goods due to lack of perfect competition.

Wage Rate

The amount of compensation an employee receives per unit of time worked, often expressed hourly.

Workers Employ

The act of hiring labor, where businesses or individuals provide jobs to workers in exchange for their services.

MRC = MRP

An economic condition where a firm's Marginal Resource Cost equals its Marginal Revenue Product, optimizing resource allocation.