Which of the following would not be expected to occur in a purely competitive market in long-run equilibrium?
A) Consumer and producer surplus will be minimized.
B) P = MC = lowest ATC.
C) The maximum willingness to pay for the last unit equals the minimum acceptable price for that unit.
D) We would expect all of these to occur in the long run in a purely competitive market.

Question

Quizplus · Accepted Answer

In a purely competitive market in long-run equilibrium, consumer and producer surplus are maximized, not minimized, due to efficient allocation of resources.

Which of the Following Would Not Be Expected to Occur