When a perfectly competitive, well-functioning market is not in equilibrium:
A. total surplus is not maximized.
B. there are no exchanges that can make some better off without someone becoming worse off.
C. the market is efficient.
D. All of these are true.
A. total surplus is not maximized.
You might also like to view...
The capacity of a firm can best be described as:
A) when a firm are producing maximum output B) a firm's production when operating normal hours using a normal sized workforce C) when a firm makes full use of all the space available in his factory or building D) when all of the firm's workers are producing at their maximum potential
The pig farm industry is perfectly competitive. Which of the following is true?
a. Since the industry is perfectly competitive, price and quantity are at the socially efficient levels. b. The competitive price is higher and quantity lower than the socially efficient point. c. The competitive price is higher and quantity higher than the socially efficient point. d. The competitive price is lower and quantity higher than the socially efficient point.
The one thing that all economic models have in common is the
a. emphasis on macroeconomics b. attempt to explain market prices c. analysis of what ought to be d. use of abstraction e. ability to describe economic realities exactly
Since World War II,
a. air pollution has worsened in most U.S. cities. b. many new pollutants have been introduced or identified. c. the federal government has reduced its reliance on economic incentives as a means of reducing pollution. d. All of the above are correct.