When a Market Equilibrium Is Achieved

question 78

Multiple Choice

When a market equilibrium is achieved,

• A)those who are willing to pay the most for the good obtain it.
• B)government regulation will have succeeded.
• C)anyone who has the skills to produce the good sells some.
• D)shortages and surpluses become minor.
• E)anyone who is willing to pay anything for the good obtains it.

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Definitions:

Profit

The financial gain realized when the revenue from business activities exceeds the costs and expenses associated with its operation.

Bales

Large bundles or packages of material, most commonly used in reference to agriculture commodities like hay or cotton.

Profit-maximizing

In economics, this refers to the process by which a firm determines the price and output level that returns the greatest profit.

Profit

is the financial gain realized when the revenue generated from business activities exceeds the expenses, costs, and taxes needed to sustain the activity.