Which of the following is true about competitive markets (select all that apply)
ID: 1200814 • Letter: W
Question
Which of the following is true about competitive markets (select all that apply):
Consumer surplus is maximized.
Producer surplus is maximized.
The sum of consumer plus producer surplus is maximized.
Goods are distributed to those who will benefit most (in utility terms).
Goods are distributed to those with the highest willingness to pay.
A.Consumer surplus is maximized.
B.Producer surplus is maximized.
C.The sum of consumer plus producer surplus is maximized.
D.Goods are distributed to those who will benefit most (in utility terms).
E.Goods are distributed to those with the highest willingness to pay.
Explanation / Answer
A, B, C, D pertains to Competitive Market.