Economic surplus is maximized in a competitive market when
A) demand is equal to supply.
B) the deadweight loss equals the sum of consumer surplus and producer surplus.
C) marginal benefit equals marginal cost.
D) producers sell the quantity that consumers are willing to buy.
Answer: C
You might also like to view...
Which of the following goods is most likely to be over consumed?
A. Fish in the ocean B. Chickens on a farm C. Horses on a ranch D. Water from a reservoir
The Laffer curve shows as tax rates rise, tax revenue:
a. rises. b. first rises, then falls, and then rises again. c. falls. d. first rises, and then falls. e. remains at a constant level.
If salsa and nacho chips are complements, an increase in the price of nacho chips would
a. increase the price of salsa. b. decrease the demand for salsa. c. increase the demand for salsa. d. have no effect on the demand for salsa.
Which of the following goods is not excludable and not rival in consumption?
a. fish in the ocean b. tickets to a professional basketball game c. a tornado siren d. a premium television channel