\"The competitive market outcome is equitable.\" Is this statement generally con

ID: 1226745 • Letter: #

Question

"The competitive market outcome is equitable." Is this statement generally considered to be correct?

Given the various views of equity in society, at least some would agree that this statement is

A. correct because the competitive market outcome rewards those who are most able and work the hardest.

B. incorrect because everyone's utility is not equally weighted at the competitive market equilibrium.

C. correct because the utility of the least minus well minus off person is maximized at the competitive market equilibrium.

D. incorrect because the competitive market outcome is not Pareto efficient.

E. both A and B could be correct.

Answer : Option A is correct.

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