The conclusion that the level of output is efficient at the market equilibrium rests on all of the following assumptions EXCEPT that

Question

Quizplus · Accepted Answer

The assumption that the government regulates price and output is not necessary for the conclusion that the level of output is efficient at the market equilibrium. In fact, the assumption of government regulation may suggest that the market is not perfectly competitive and could actually interfere with the efficient level of output. The other assumptions listed (A, B, and D) are necessary for the conclusion to hold.

The Conclusion That the Level of Output Is Efficient at the Market