If equilibrium is achieved in a competitive market, then
A)there is no deadweight loss.
B)the deadweight loss will be maximized.
C)the deadweight loss will equal the sum of consumer surplus and producer surplus.
D)the deadweight loss will be the same as the opportunity cost of the last unit of output sold.

Question

Quizplus · Accepted Answer

When equilibrium is achieved in a competitive market, the quantity supplied by the producers is equal to the quantity demanded by the consumers, resulting in an efficient allocation of resources with no deadweight loss. Therefore, choice A is the best answer.

If Equilibrium Is Achieved in a Competitive Market, Then