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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Indicate whether the statement is true or false
In 2008, the Fed and the Treasury began attempting to stabilize the commercial banking system through the Troubled Asset Relief Program (TARP) by
A) allowing domestic banks to be taken over by foreign banks. B) permitting banks to sell commercial bonds to the Federal Reserve Bank. C) allowing banks to double any outstanding claims for federal deposit insurance reimbursements. D) providing funds to banks in exchange for stock.