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Social Science Clinic => Economics => Microeconomics => Topic started by: j.rubin on Oct 5, 2019

Title: "A competitive market achieves economic efficiency by maximizing the sum of consumer surplus and ...
Post by: j.rubin on Oct 5, 2019

"A competitive market achieves economic efficiency by maximizing the sum of consumer surplus and producer surplus." This statement

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is true only if there are no positive or negative externalities in the market.

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is true only if there are positive externalities in production in the market.

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is true only if there are no negative externalities in the market.

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is true in theory, but economic efficiency cannot be achieved in a real market.

Title: "A competitive market achieves economic efficiency by maximizing the sum of consumer surplus and ...
Post by: guyanai on Oct 5, 2019

is true only if there are no positive or negative externalities in the market.

Title: "A competitive market achieves economic efficiency by maximizing the sum of consumer surplus and ...
Post by: j.rubin on Oct 5, 2019

Thanks

Title: "A competitive market achieves economic efficiency by maximizing the sum of consumer surplus and ...
Post by: guyanai on Oct 5, 2019

Welcome :)