At a competitive equilibrium,if there are no taxes,subsidies,price regulations,quantity regulations,or externalities,
A) the marginal benefit is greater than the marginal cost.
B) resource use is efficient.
C) the marginal benefit is less than the marginal cost.
D) both the marginal benefit and the marginal cost of the last unit produced equal zero.
E) the marginal benefit is greater than the marginal cost by as much as possible.

Question

Quizplus · Accepted Answer

At a competitive equilibrium, the market has allocated resources in the most efficient way, which means it has achieved allocative efficiency. This is where the marginal benefit of producing a good or service is equal to its marginal cost. Therefore, resource use is efficient.

At a Competitive Equilibrium,if There Are No Taxes,subsidies,price Regulations,quantity Regulations,or