A market is efficient when: Question 2 options: Total social costs are minimized Total revenue is...
A market is efficient when:
Question 2 options:
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Total social costs are minimized |
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Total revenue is maximized |
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Firms' profits are maximized |
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Consumer surplus is maximized |
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Producer surplus is maximized |
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Social welfare is maximized |
Homework Answers
An efficient market occurs in the when the total social welfare is maximized, the social welfare is achieved when the total surplus in the economy is maximized. The total surplus is the sum of both the consumer and the producer surplus, the market will be inefficient if there is any externalities.
Ans: Social welfare is maximized.
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A market is efficient when:
Question 2 options:
Total social costs are minimized
Total revenue is...
Which of the following statements correctly describes the relationship between the size of the deadweight loss...
Which of the following statements correctly describes the relationship between the size of the deadweight loss and the amount of tax revenue as the size of a tax increases from a small tax to a medium tax and finally to a large tax? The size of the deadweight loss increases, but the tax revenue first increases, then decreases. Both the size of the deadweight loss and tax revenue increase. The size of the deadweight loss increases, but the tax revenue...
Question 7 1 pts Consider a perfectly competitive market. Why is the market equilibrium pareto efficient?...
Question 7 1 pts Consider a perfectly competitive market. Why is the market equilibrium pareto efficient? in this market, one can make someone better off without harming someone else. consumer surplus is maximized but producer surplus is not maximized Oproducer surplus is maximized but consumer surplus is not maximized total surplus is maximized. all of the above
when the market is in equilibrium, with no government intervention? a)total surplus is minimized. b)total surplus...
when the market is in equilibrium, with no government intervention? a)total surplus is minimized. b)total surplus is maximized. c)government maximizes total revenue. d) none of the above.
1. The services of real estate brokers are provided in a competitive market. If the Oregon...
1. The services of real estate brokers are provided in a competitive market. If the Oregon Association of Realtors enacts new requirements that limit the number of real estate brokers, which of the following is most likely to occur? A) Producer surplus will increase. B) Entry of new brokers will increase. C) Consumer surplus will increase. D) Social welfare will increase. 2. Which of the following best describes the market reaction if the Oregon Liquor Control Commission restricts the number...
48. Which statement explains why free markets fail to produce public goods? Firms do not want...
48. Which statement explains why free markets fail to produce public goods? Firms do not want to produce the good because they fear competition will drive the price down below costs. Consumers do not want to buy the good because the price is higher than the value of benefits they would receive. ° Consumers do not want to buy the product because each hopes that someone else will buy it and then all consumers will be able to have the...
If there is a market outcome in which the marginal benefit to consumers of the last...
If there is a market outcome in which the marginal benefit to consumers of the last unit produced is equal to its marginal cost, then A. maximum deadweight loss occurs. B. profits are maximized. C. allocative efficiency is achieved. D. costs are minimized. Also, A. deadweight loss is less than zero. B. consumer surplus equals producer surplus. C. quantity demanded is greater than quantity supplied. D. total economic surplus is maximized.
Deadweight loss occurs when A) consumer surplus is reduced. B) the maximum level of total welfare...
Deadweight loss occurs when A) consumer surplus is reduced. B) the maximum level of total welfare is not achieved. C) producer surplus is greater than consumer surplus. D) firms maximize profits.
When the efficient quantity is produced O A. producer surplus exceeds consumer surplus by the greatest...
When the efficient quantity is produced O A. producer surplus exceeds consumer surplus by the greatest possible amount O B. consumer surplus exceeds producer surplus by the greatest possible amount O C. total producer surplus is zero . O D. total consumer surplus is zero. O E. the sum of consumer surplus and producer surplus is maximized
33. Efficiency is attained when a. total surplus is maximized. b. producer surplus is maximized. c....
33. Efficiency is attained when a. total surplus is maximized. b. producer surplus is maximized. c. all resources are being used. d. consumer surplus is maximized and producer surplus is minimized. 34. A price floor is binding when it is set a. above the equilibrium price, causing a shortage. b, above the equilibrium price, causing a surplus. c. below the equilibrium price, causing a shortage. d. below the equilibrium price, causing a surplus. 35. Which of the following is not...
QUESTION 9 What type of firms are in a perfectly competitive market? O Price-takers O Price-searcher...
QUESTION 9 What type of firms are in a perfectly competitive market? O Price-takers O Price-searcher Quantity-taker O Cost-maximizer QUESTION 10 When is welfare (or total surplus) maximized? O When all consumers who value chocolate are able to buy chocolate. O When the total net gain to producers is minimized. O When the market is in equilibrium. O When all producers are able to sell their chocolate.
Which of the following statements correctly describes the relationship between the size of the deadweight loss and the amount of tax revenue as the size of a tax increases from a small tax to a medium tax and finally to a large tax? The size of the deadweight loss increases, but the tax revenue first increases, then decreases. Both the size of the deadweight loss and tax revenue increase. The size of the deadweight loss increases, but the tax revenue...
Question 7 1 pts Consider a perfectly competitive market. Why is the market equilibrium pareto efficient? in this market, one can make someone better off without harming someone else. consumer surplus is maximized but producer surplus is not maximized Oproducer surplus is maximized but consumer surplus is not maximized total surplus is maximized. all of the above
48. Which statement explains why free markets fail to produce public goods? Firms do not want to produce the good because they fear competition will drive the price down below costs. Consumers do not want to buy the good because the price is higher than the value of benefits they would receive. ° Consumers do not want to buy the product because each hopes that someone else will buy it and then all consumers will be able to have the...
When the efficient quantity is produced O A. producer surplus exceeds consumer surplus by the greatest possible amount O B. consumer surplus exceeds producer surplus by the greatest possible amount O C. total producer surplus is zero . O D. total consumer surplus is zero. O E. the sum of consumer surplus and producer surplus is maximized
33. Efficiency is attained when a. total surplus is maximized. b. producer surplus is maximized. c. all resources are being used. d. consumer surplus is maximized and producer surplus is minimized. 34. A price floor is binding when it is set a. above the equilibrium price, causing a shortage. b, above the equilibrium price, causing a surplus. c. below the equilibrium price, causing a shortage. d. below the equilibrium price, causing a surplus. 35. Which of the following is not...
QUESTION 9 What type of firms are in a perfectly competitive market? O Price-takers O Price-searcher Quantity-taker O Cost-maximizer QUESTION 10 When is welfare (or total surplus) maximized? O When all consumers who value chocolate are able to buy chocolate. O When the total net gain to producers is minimized. O When the market is in equilibrium. O When all producers are able to sell their chocolate.
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