It Can Be Inferred That When Firms and Consumers Respond

Multiple Choice

It can be inferred that when firms and consumers respond to changing price signals in a competitive market with well-defined and transferable property rights:

A) they will achieve the efficient solution in the marketplace.
B) they will rarely achieve the efficient solution given flexible prices.
C) they will, in the real world, seldom act according to marginal benefit and marginal cost analysis.
D) there will generally be a shortage of apples, because they are scarce.