At a Competitive Equilibrium with No Externalities,taxes,subsidies,public Goods,common Resources,or High

question 170

Multiple Choice

At a competitive equilibrium with no externalities,taxes,subsidies,public goods,common resources,or high transactions costs,which of the following occurs?
i.an efficient outcome
ii.definitely a fair outcome when judged by the fair-results approach
iii.marginal cost equals marginal benefit
iv.producer surplus equals consumer surplus

• A) i and iii
• B) i, ii and iii
• C) ii and iii
• D) i, ii, iii and iv
• E) only i

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Definitions:

Offer

A proposal presented by one party to another as a basis for negotiations in a potential contract.

Accepted

Regarded as satisfactory or agreed upon; an acknowledgement of an offer or situation.

Promissory Estoppel

A legal principle preventing a party from withdrawing a promise made to another party if the latter has relied on that promise to their detriment.

Promisee

The person to whom a promise is made in a contractual agreement, and who stands to benefit from its fulfillment.