Market equilibrium is not efficient unless markets are ________ and the ________ curve includes all the relevant production costs.
A) perfectly competitive;demand
B) imperfectly competitive;demand
C) perfectly competitive;supply
D) highly regulated;supply
E) controlled by a few multinational corporations;supply

Question

Quizplus · Accepted Answer

Market equilibrium is efficient only when markets are perfectly competitive and the supply curve includes all the relevant production costs. With perfect competition, no single firm in the market can affect the price of the product or service. And, if the supply curve includes all the relevant production costs, there will be no externalities, and resources will be allocated efficiently.

Market Equilibrium Is Not Efficient Unless Markets Are ________ and the ________

Market Equilibrium Is Not Efficient Unless Markets Are and the