Which of the Following Conditions Holds in an Economically Efficient

question 189

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 maximized.

---

Definitions:

Allocated

The process of assigning or distributing resources or expenses to various accounts or periods.

Square Feet

A unit of area measurement equivalent to a square measuring one foot on each side, commonly used in measuring real estate and building spaces.

Indirect Expenses

Costs that are not directly attributable to a specific product or service but are necessary for the overall operation of a business, such as utilities, rent, and administrative salaries.

Gross Sales

Gross sales represent the total sales revenue of a company, without deducting any sales returns, allowances, or discounts.