A competitive market produces the economically eﬃcient outcome if the following conditions are met, except

Question

Quizplus · Accepted Answer

The condition mentioned in option D is incorrect. The economically efficient outcome occurs when the market produces only units for which the marginal benefit is equal to the marginal cost. This means that the value consumers place on the last unit produced (marginal benefit) is equal to the cost of producing that unit (marginal cost). Thus, option D should state "the market produces only units for which marginal benefit is equal to marginal cost."

A Competitive Market Produces the Economically Eﬃcient Outcome If the Following