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O A. is a market outcome 0 B. is a market outcome in which the marginal benefit

ID: 1163290 • Letter: O

Question

O A. is a market outcome 0 B. is a market outcome in which the marginal benefit to consumers of the last unit produced is equal to its marginal cost of production. ? c. is a market outcome in which every individual is better off than they would be at any other market ou O D. both a and b O E. all of the above. in which the sum of consumer surplus and producer surplus is at a maximum. O A. to help understand the negative consequences of taxes O B. to help policymakers understand the negative consequences of price ceilings O C. to illustrate O D. to help policymakers understand the negative consequences of price floors O E. all of the above the benefits of a competitive market equilibrium.

Explanation / Answer

Economic efficiency

Answer-               D. both a and b

Since economic efficiency is a market outcome in which the marginal benefit to consumers of the last unit produced is equal to its marginal cost of production and in which the sum of consumer surplus and producer of surplus is at a maximum.

Economists define Economic Efficiency this way

Answer-               E. All of the above

To help policy makers understand the negative consequences of taxes, price ceilings, & price floors and to illustrate the benefits of a competitive market equilibrium.