Which of the following statements is true of competitive market equilibrium?
A) The determination of equilibrium price and quantity is independent of the demand for goods.
B) Social surplus is minimized at the competitive equilibrium.
C) At the competitive equilibrium, there are no unexploited gains from trade.
D) A competitive equilibrium is determined only by a few large sellers in the market.
C
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In practice, the ECB has committed to what type of strategy for monetary policy?
A) inflation targeting B) monetary targeting C) unclear as to inflation or monetary targeting D) exchange rate targeting
Two goods, X and Y, are complementary goods if the demand for X:
a. increases when the price of Y increases. b. increases when income increases. c. decreases when the price of Y increases. d. increases as the price of its substitute good increases. e. decreases as the price of its substitute good decreases.