Author Question: We say that equilibrium in a perfectly competitive market is allocatively efficient because a. the ... (Read 92 times)

sabina · **on:** Jun 30, 2018

We say that equilibrium in a perfectly competitive market is allocatively efficient because
a. the sum of consumer and producer surplus is maximized
b. the sum of consumer and producer surplus is minimized
c. the sum of consumer and producer surplus is zero
d. consumer surplus is maximized
e. producer surplus is zero

Question 2

Monopolistically competitive industries consist of
a. one firm selling several products
b. one firm selling one product
c. many firms, all selling identical products
d. many firms, each selling a slightly different product
e. many firms, each selling a completely different product