Which of the following conditions holds in an economically efficient competitive market equilibrium?
A) The deadweight loss is positive but at a minimum.
B) Producer and consumer surplus are exactly equal in size.
C) There are no positive and no negative external effects from consumption and production.
D) The marginal benefit of the last unit produced and consumed is maximised.

Question

Quizplus · Accepted Answer

In an economically efficient competitive market equilibrium, there are no externalities, meaning no positive or negative external effects from consumption and production. This ensures that the market operates efficiently without any distortions.

Which of the Following Conditions Holds in an Economically Efficient