When a perfectly competitive, well-functioning market is in equilibrium:
A) total surplus is maximized.
B) the market is efficient.
C) deadweight loss is zero.
D) All of these are correct.

Question

Quizplus · Accepted Answer

When a perfectly competitive, well-functioning market is in equilibrium, total surplus is maximized, the market is efficient, and deadweight loss is zero. Therefore, all of these are correct.

When a Perfectly Competitive, Well-Functioning Market Is in Equilibrium