When property rights are well defined and markets are competitive,
a. the total gains from trade (the combined area of producer and consumer surplus) are maximized at the market equilibrium.
b. the market equilibrium is consistent with economic efficiency in that all units creating more benefit than cost have been produced.
c. the market will automatically move toward the price and quantity where the quantity supplied and the quantity demanded are in balance.
d. all of the above are true.
D
You might also like to view...
Payroll taxes are paid on
A) earned income. B) investment income. C) inheritances. D) all of the above
A decrease in liabilities will reduce a firm's accounting profit
Indicate whether the statement is true or false
Only about one out of three custodial mothers who are poor gets any child support payments
Indicate whether the statement is true or false
Between 1960 and 2013 U.S. GDP, measured in dollars of constant purchasing power, expanded about 5.0 times. However, the standard of living only increased by 4 times over this period. Explain the difference