Which of the Following Occurs When a Market Is Efficient

question 35

Multiple Choice

Which of the following occurs when a market is efficient?

• A) Consumer surplus equals producer surplus.
• B) Consumer surplus is as large as possible.
• C) Producer surplus is as large as possible.
• D) The sum of consumer surplus and producer surplus is maximized.
• E) The marginal benefit exceeds the marginal cost by as much as possible.

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Definitions:

Enhancing Ratios

Financial metrics intended to improve the understanding of a company's operational efficiency and financial health.

National Performance Measures

A set of indicators used to gauge the performance of a nation in various aspects like economic health and social welfare.

Stock Market Indexes

Statistical measures that track the performance of a basket of selected stocks, representing a specific sector or market.

Asset Management Ratios

Financial metrics used to assess how efficiently a company manages its assets to generate revenue, including turnover ratios for inventory, receivables, and fixed assets.