In a competitive market equilibrium
A) total consumer surplus equals total producer surplus.
B) marginal benefit and marginal cost are maximized.
C) consumers and producers benefit equally.
D) the marginal benefit equals the marginal cost of the last unit sold.
Answer: D
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Refer to above figure. In the absence of a tariff and in the presence of trade, what is the country's consumer surplus?
What will be an ideal response?
The greatest number of recent immigrants to the U.S. come from Mexico because of:
a. political insecurity in Mexico. b. religious insecurity in Mexico. c. proximity and wage differentials. d. racial discrimination in Mexico. e. greater social security in the United States.
The firm maximizes economic profit by finding the rate of output at which total revenue ________ total cost ________
a. equals; all else constant b. plus; equals c. minus; equals zero d. exceeds; by the greatest amount.
Other things constant, a fall in the inflation rate causes the velocity of money to increase
Indicate whether the statement is true or false