At a competitive market equilibrium,if there are no taxes,subsidies,price regulations,quantity regulations,or externalities,
i.consumer surplus is minimized.
ii.marginal cost equals marginal benefit.
iii.resources are efficiently used.
iv.producer surplus is minimized.
A) ii and iii
B) i and ii
C) i and iv
D) i, ii, iii, and iv
E) ii only

Question

Quizplus · Accepted Answer

In a competitive market equilibrium without taxes, subsidies, price regulations, quantity regulations, or externalities, marginal cost equals marginal benefit, indicating that resources are being used efficiently. This does not mean consumer or producer surplus is minimized; in fact, both are typically maximized in such a scenario.

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