If the Market for Bicycles Is Efficient,then

question 106

Multiple Choice

If the market for bicycles is efficient,then

• A) no more bicycles can be produced.
• B) marginal benefit exceeds marginal cost.
• C) consumer surplus must be greater than producer surplus.
• D) it is not possible to produce more bicycles without sacrificing another, more highly valued good.
• E) consumer surplus must equal producer surplus.

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Definitions:

Mean Absolute Deviation

A measure of variability that calculates the average distance between each data point and the mean of the data set.

Actual Values

The observed or measured values in a dataset, as opposed to predicted or estimated values.

Forecast Values

The projected or predicted numerical values in the future based on current and historical data analysis.

Seasonal Indexes

Statistical factors used in time series analysis to adjust for seasonality and understand periodic fluctuations in data.