In a Competitive Market with No Externalities

question 171

Multiple Choice

In a competitive market with no externalities,

• A) the consumer surplus is equal to zero because of competition.
• B) buyers cannot control the price, so the consumer surplus is zero.
• C) at the equilibrium price, marginal benefit exceeds marginal cost.
• D) at the equilibrium price, marginal benefit equals marginal cost.
• E) at the equilibrium price, the total amount of consumer surplus equals the total amount of producer surplus.

Calculate the proceeds from the sale of stock, taking into account commission charges.

Understand the effect of differential rates on odd lot sales and purchases.

Analyze the daily movement of stock prices and compute net changes.

Compute the amount allocated to preferred stockholders when a company declares dividends.