When economists say that market equilibrium is consistent with economic efficiency, they mean
a. the total gains from trade (the combined area of producer and consumer surplus) are smaller than potentially could be the case at a different price and quantity.
b. all units creating more benefit than cost have been produced.
c. some units have been produced that cost more than the benefits they create.
d. consumers and producers have made decisions without properly taking into account the market price.
B
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To try to help farmers, governments I. set production quotas. II. set price ceilings
A) I and II B) only II C) only I D) neither I nor II
The U-pick berry market is perfectly competitive. Suppose that all U-pick blueberry farms have the same cost curves and all are making an economic profit. What happens as time passes? What is the long-run equilibrium outcome?
What will be an ideal response?