Which of the following occurs when a market is efficient?
A) Producers earn the highest income possible.
B) Production costs equal total benefit.
C) Consumer surplus equals producer surplus.
D) Scarce resources are used to produce the goods and services that people value most highly.
E) Every consumer has all of the good or service he or she wants.
D
You might also like to view...
Countercyclical policy:
What will be an ideal response?
Refer to the graphs above. For which graph is the supply perfectly inelastic?
A. Graph A B. Graph B C. Graph C D. Graph D
______ is the percentage change in hours worked divided by the percentage change in wages—will determine the shape of the labor supply curve.
a. Elasticity of savings b. Cross-price elasticity of demand c. Income elasticity of demand d. Wage elasticity of labor supply
Perfect competition and pure monopoly are concepts useful primarily for realistic application
a. True b. False Indicate whether the statement is true or false