When the marginal benefit equals the marginal cost of the last unit sold in a competitive market
A) producer surplus is equal to consumer surplus.
B) the net benefit of consumers is equal to the net benefit of producers.
C) an economically efficient level of output is produced.
D) total benefit is equal to total cost.
C
You might also like to view...
Patents are a source of:
A) legal market power. B) natural market power. C) regulated market power. D) firm-biased market power.
The consumption function shows
a. how fast the economy is consuming its capital. b. that the amount of national income determines the rate at which the economy consumes its resources. c. that households’ incomes determine how much the households will spend for consumer goods. d. the rate at which people actually use up their consumer goods.
A firm, judged to be a natural monopoly in a small rural market like Centerville, may be considered monopolistically competitive in a market such as New York City
Indicate whether the statement is true or false
In an economic expansion, people used their charge cards to purchase many goods. Now the economy is in a recession and people must use much of their reduced incomes to pay back debts. If employees manufacturing the goods people used to buy are laid off, they will suffer from:
A. cyclical unemployment. B. structural unemployment. C. permanent unemployment. D. frictional unemployment.