Question: When does market efficiency occur? a. when consumer surplus equals producer surplus b. when the marginal utility of each good consumed is identical c. when

When does market efficiency occur?

a. when consumer surplus equals producer surplus

b. when the marginal utility of each good consumed is identical

c. when the deadweight loss is equal to the total welfare gains

d. when the marginal benefit of the last unit consumed is equal to the marginal cost of producing this last unit

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Economics Questions!

Q:

1)Suppose demand for a monopolist's product is given by P=4008Y while the monopolist's marginal cost is given by MC=80. A. Derive the marginal revenue curve. Sketch and label the marginal revenue...

Q:

1) Jane drinks Beer (B) only when she consumes bags of Chips (C) Jane always consumes two bottles of beer along with a bag of chips. They are perfect complements for Jane. Price of a bottle of beer...

Q:

Economists assume that Group of answer choices individuals behave in unpredictable ways. consumer behavior is explained by the existence of unlimited resources. people put other people's interests...

Q:

refer to the files below (20 points) The market inverse demand curve is P(y) = 10 - 2y, and a monopolist's cost curve is y2 + 2. (a) What output level y maximizes the monopolist's revenue? What...

Q:

Question 5 One difference between monopolistic competition and oligopoly is that firms in monopolistic competition are assumed to A cooperate in setting price and output B act independently in...

Q:

Solve the following attachments The Pristine River Case The Pristine River has two polluting firms on its banks. Acme Industrial and Creative Chemicals each dump 100 tons of glop into the river each...

Q:

Multiple choice: Q1. To move closer to the social optimum when a negative externality exists, the cost to society of the externality should be A. incorporated/added on to the price so that demand...

Q:

Hello please provide assistance with the following problems and show work. Thank you! Assume the nation of Australia is \"small\" and thus unable to influence world price. Its demand and supply...

Q:

The following questions are of micro economics. Please help me with better understanding. 2. You have collected the following data on output and total variable costs: \" m m m a. b. Identify the...

Q:

Solve the following questions 1. This quration concerns surplus and the effect of taxes. Use the sue information as in Problem Set 46, and suppose N = 400. (a) Draw market demand and supply function...

Q:

Eldor Corporation is a railway and motor carrier with 2012 operating revenues of ap- proximately $4.8 billion. Its financial statements show the following breakdown of income taxes. Current: Federal...

Q:

10-kg of R-134a at 300 kPa fills a rigid container whose volume is 14 L. Determine the temperature and total enthalpy in the container. The container is now heated until the pressure is 600 kPa....

Q:

Five statements about parity checking are given below, but they are not in the correct order. Put the statements into their correct sequence. i the sending computer sends the binary data including...

Q:

How do between-S versus within-S designs differ? Make up a list of names for imaginary participants, and use these names to show an example of between-S groups and within-S groups.

Q:

Ten percent of the items produced at a plant are defective. A random sample of 20 items is selected. What is the probability that more than three items in the sample are defective? If items are...

Q:

The demand and supply curves for gasoline are the same in Upper Slobbovia as in Lower Slobbovia. However, in Upper Slobbovia everybody's time is worth just $1 per hour, while in Lower Slobbovia...

Q:

An airline is interested in selecting a software package for its reservation system. Even though the company would like to maximize use of its available seats, it prefers to bump as few passengers as...

Q:

Airbus sold an A400 aircraft to Delta Airlines, a U.S. company, and billed $30 million payable in six months. Airbus is concerned about the euro proceeds from international sales and would like to...

Q:

Identifying How Machine Learning Can Solve Problems What problem would you like your machine learning model to solve? What output would you like your machine learning model to produce? How will you...

Q:

4. In the next communication situation you are in, already think through three different communication strategies, which will make you achieve greater flexibility. Then practice on these as soon as...

Q:

2. Now imagine a real situation in your workplace or home situation where someone gives you feedback. a. Did you perceive the feedback as a hidden criticism? b. Did you perceive the feedback as a...

Q:

2. In this chapter, the reader should reflect on the following concepts: feedback and flexibility as a basis for change, intention and communication as a basis for change and behavioural patterns as...