In a competitive market equilibrium the ________ equals the ________ of the last unit sold.
A)total profit; marginal benefit
B)total cost; marginal cost
C)profit; selling price
D)marginal benefit; marginal cost

Question

Quizplus · Accepted Answer

In a competitive market equilibrium, the market price is equal to the marginal cost of the last unit sold. Therefore, the correct choice is option D, where the marginal benefit equals the marginal cost of the last unit sold. Option A is incorrect because total profit is not relevant to determining the equilibrium price and quantity. Option B is incorrect because total cost is also not relevant to determining the equilibrium price and quantity. Option C is incorrect because profit is not necessarily equal to the selling price and is not relevant to determining the equilibrium price and quantity.

In a Competitive Market Equilibrium the ________ Equals the ________

In a Competitive Market Equilibrium the Equals the