Asked by
Hawra AL Harthi
on Nov 27, 2024
Verified
In long-run equilibrium, purely competitive markets
A) minimize total cost.
B) maximize the sum of consumer surplus and producer surplus.
C) yield economic profits to most sellers.
D) inevitably degenerate into monopoly in increasing-cost industries.
Producer Surplus
The difference between the amount producers are willing to accept for a good or service versus what they actually receive.
- Recognize the features and results of perfectly competitive markets in steady-state equilibrium.
- Recognize the value of improving economic welfare through the maximization of consumer surplus and producer surplus.
Verified Answer
KR
Learning Objectives
- Recognize the features and results of perfectly competitive markets in steady-state equilibrium.
- Recognize the value of improving economic welfare through the maximization of consumer surplus and producer surplus.