In a competitive market, an efficient allocation of resources is characterized by
a. a price greater than the marginal cost of production.
b. the possibility of further mutually beneficial transactions.
c. the largest possible sum of consumer and producer surplus.
d. a value of consumer surplus equal to that of producer surplus.
c
Economics
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The price elasticity of demand measures the responsiveness of
A) supply to demand changes. B) equilibrium changes. C) quantity demanded to changes in the price. D) demand to supply changes. E) the price to changes in quantity demanded.
Economics
If the interest rate on a bond is above the equilibrium interest rate, there is an excess ________ for bonds and the bond price will ________
A) demand; rise B) demand; fall C) supply; rise D) supply; fall
Economics