Which of the following are characteristics of an efficient market?Select all that apply.Only producer surplus is maximizedOnly consumer surplus is maximized.Total surplus (aka social welfare) is maximizedQuantity supplied equals quantity demanded.Deadweight loss equals zero.Willingness to pay exceeds willingness to sell at the margin.Willingness to sell exceeds willingness to pay at the margin.There is a tax.There is a price ceiling.There is a price floor.OO0O00

Question
Asked Nov 8, 2019
Which of the following are characteristics of an efficient market?
Select all that apply.
Only producer surplus is maximized
Only consumer surplus is maximized.
Total surplus (aka social welfare) is maximized
Quantity supplied equals quantity demanded.
Deadweight loss equals zero.
Willingness to pay exceeds willingness to sell at the margin.
Willingness to sell exceeds willingness to pay at the margin.
There is a tax.
There is a price ceiling.
There is a price floor.
OO0O00
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Which of the following are characteristics of an efficient market? Select all that apply. Only producer surplus is maximized Only consumer surplus is maximized. Total surplus (aka social welfare) is maximized Quantity supplied equals quantity demanded. Deadweight loss equals zero. Willingness to pay exceeds willingness to sell at the margin. Willingness to sell exceeds willingness to pay at the margin. There is a tax. There is a price ceiling. There is a price floor. OO0O00

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An efficient market refers that in which demand and supply are equal and market gets cleared. It means in the efficient market total surplus (aka social welfare) is maximized, where the quantity supplied equals quantity demanded and Deadweight loss equals zero.

 

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