Costs should always be evaluated before determining benefits.

Economic efficiency in a competitive market is achieved when

A) producer surplus equals the total amount firms receive from consumers minus the cost of production. B) the marginal benefit equals the marginal cost from the last unit sold. C) consumers and producers are satisfied. D) economic surplus is equal to consumer surplus.

Which of the following is likely to have the narrowest bid-asked spread?

A) A Nasdaq stock B) A U.S. Treasury bill C) A corporate bond D) A Fannie Mae bond