If the market for bicycles is efficient,then
A) no more bicycles can be produced.
B) marginal benefit exceeds marginal cost.
C) consumer surplus must be greater than producer surplus.
D) it is not possible to produce more bicycles without sacrificing another, more highly valued good.
E) consumer surplus must equal producer surplus.

Question

Quizplus · Accepted Answer

In an efficient market, resources are allocated in the most effective way, meaning that producing more of one good (like bicycles) would require sacrificing the production of another good that has a higher value. This is a reflection of the concept of opportunity cost and the efficient allocation of resources.

If the Market for Bicycles Is Efficient,then