Multiple Choice
A market equilibrium might not maximize total economic surplus because:
A) efficiency is not an important social goal.
B) in a market equilibrium individuals do not act rationally.
C) in a market equilibrium individuals do not exploit all opportunities for individual gain.
D) sometimes goods entail costs and benefits that do not fall on buyers and sellers.
Correct Answer:
Verified
Correct Answer:
Verified
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Q10: Refer to the accompanying figure, which shows
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