In a Competitive Market with No Externalities

Multiple Choice

In a competitive market with no externalities,

A) at the equilibrium price, marginal benefit exceeds marginal cost.
B) buyers cannot control the price, so the consumer surplus is zero.
C) the consumer surplus is equal to zero because of competition.
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.