Which of the following conditions does not need to occur for a market to achieve allocative efficiency?
A. The total revenue received by producers equals the total cost of production.
B. Consumers' maximum willingness to pay equals producers' minimum acceptable price for the last unit of output.
C. The marginal benefit of the last unit produced equals the marginal cost of producing that unit.
D. The sum of producer and consumer surplus is maximized.
Answer: A
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Inflation at a rate that exceeds 50 percent per month is called
A) megainflation. B) hyperinflation. C) super inflation. D) extreme inflation. E) skyflation.
Leontief reconciled his results by arguing that
A) American labor is more efficient than foreign. B) American capital is more efficient than foreign. C) Foreign capital is more efficient than American. D) Foreign labor is more efficient than American.
The demand for labor curve is identical to the:
a. total wage cost curve. b. marginal resource curve. c. total revenue curve. d. marginal revenue product curve. e. marginal revenue curve.
The Federal Open Market Committee consists of
a. the president and the Board of Governors. b. Congresspeople, Senators, and the Board of Governors. c. the Secretary of the Treasury and the Board of Governors. d. the Board of Governors and five district bank presidents.