If there is allocative efficiency in a purely competitive market for a product, the maximum price consumers are willing to pay is:
A. Less than marginal benefit
B. Greater than marginal cost
C. Equal to the amount of efficiency or deadweight losses
D. Equal to the minimum price producers are willing to accept
D. Equal to the minimum price producers are willing to accept
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In the balance of payments, the buying and selling of real and financial assets is represented in
A) current account. B) capital account. C) labor account. D) official reserve transactions account.
Risk averse individuals will diversify their investments because this will
a. increase their expected returns. b. provide them with some much-needed variety. c. reduce the variability of their returns. d. reduce their transactions costs.
A tax is regressive if it collects a:
a. larger amount as income rises. b. constant amount as income rises. c. smaller fraction of income as income falls. d. smaller fraction of income as income rises.
In the 48-year period of 1960 to 2008 , the approximate shares of U.S. GDP are
a. consumption 15 percent; investment 65 percent; government 20 percent; net exports zero b. consumption 20 percent; investment 65 percent; government zero; net exports 15 percent c. consumption 65 percent; investment 15 percent; government 20 percent; net exports zero d. consumption 65 percent; investment zero; government 20 percent; net exports 15 percent e. consumption 15 percent; investment 20 percent; government 65 percent; net exports zero