If there are no external costs or benefits, no price or quantity regulations, no taxes or subsidies, and the good is not a public good or a common resource, then efficiency is
A) achieved when a monopoly produces the good.
B) achieved when the good is produced in a competitive market.
C) achieved when the amount of output exceeds the amount produced in a competitive market.
D) unrelated to the amount produced in a competitive market.

Question

Quizplus · Accepted Answer

In a competitive market without externalities, regulations, taxes, or subsidies, the market equilibrium is efficient as it maximizes total surplus.

If There Are No External Costs or Benefits, No Price