Solved

Which of the Following Conditions Holds in Economically Efficient Competitive

Question 111

Multiple Choice

Which of the following conditions holds in economically efficient competitive market equilibrium?


A) The deadweight loss is positive but at a minimum.
B) Producer and consumer surplus are exactly equal in size.
C) There are no positive and no negative external effects from consumption and production.
D) The marginal benefit of the last unit produced and consumed is maximised.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q16: Suppose a negative externality exists in a

Q63: The social cost of cutting trees for

Q108: Figure 15.2 <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB1015/.jpg" alt="Figure 15.2

Q114: Figure 15.3 <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB1015/.jpg" alt="Figure 15.3

Q116: Figure 15.6 <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB1015/.jpg" alt="Figure 15.6

Q126: A public good that is a good

Q192: Article Summary<br>According to a study by the

Q214: When there is an externality in a

Q247: How does the construction of a market

Q249: If the paint on your house was