At an Efficient Market Outcome

question 108

Multiple Choice

At an efficient market outcome,

• A) deadweight loss is zero.
• B) marginal benefit equals marginal cost at the efficient quantity.
• C) prices just cover all opportunity costs of production.
• D) total surplus is maximized.
• E) all of the above are true.

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Definitions:

Dividend

A portion of a company's earnings distributed to shareholders, usually in the form of cash or stock.

PDQ Stock

is not a widely known key term and might refer to a specific stock symbol or an abbreviation within a particular context. Assuming it's not widely recognized, the answer would be NO.

Expected Return

The return an investor believes is most likely on an investment—that is, the investor understands that the actual return may be somewhat different in certain investments like stocks. The mean of the probability distribution of returns.

Selling Price

The amount of money for which a product or service is sold to customers.