A market equilibrium might not maximize total economic surplus because:
A) efficiency is not an important social goal.
B) in a market equilibrium individuals do not act rationally.
C) in a market equilibrium individuals do not exploit all opportunities for individual gain.
D) sometimes goods entail costs and benefits that do not fall on buyers and sellers.
Correct Answer:
Verified
Q156: If supply and demand both decrease, the
Q157: Refer to the accompanying figure. Assume the
Q158: If supply and demand both increase, the
Q159: Suppose that the equilibrium price of pickles
Q160: Refer to the accompanying figure. Assume demand
Q162: Suppose that Tom bought a bike from
Q163: When two people agree to a price
Q164: An outcome is socially optimal if it:
A)is
Q165: Suppose that Tom bought a bike from
Q166: If the equilibrium quantity of a good
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents