Which of the following is NOT a result of an efficient market?
A)Goods go to the consumers who will gain the highest marginal benefit from the good.
B)Allocative efficiency is achieved.
C)Goods are produced by the firms that can do so at the lowest marginal cost.
D)Economic surplus is minimized to reduce waste.

Question

Quizplus · Accepted Answer

Economic surplus being minimized to reduce waste is not a result of an efficient market. An efficient market implies that resources are allocated in the most productive way possible, which leads to allocative efficiency and the production of goods by firms with the lowest marginal cost. However, minimizing economic surplus can lead to an allocation of resources that doesn't maximize societal welfare.

Which of the Following Is NOT a Result of an Efficient