Proponents of free markets argue that if all markets were perfectly competitive and if the government allowed prices to be determined by demand and supply, then for all products in the economy, Answer is not Option C Proponents of free markets argue that if all markets were perfectly competitive and if the government allowed prices to be determined by defor all products in the economy,O A. price would equal marginal cost and total surplus to society would be maximized.B. marginal cost would equal zero and consumer surplus would be maximized.C. price would equal marginal cost and consumer surplus would be maximized.O D. marginal cost would equal zero and total surplus to society would be maximized.

Ans) In free market price is completely Determined by the demand and supply. There is no role of…

Answered: Proponents of free markets argue that…

Proponents of free markets argue that if all markets were perfectly competitive and if the government allowed prices to be determined by demand and supply, then for all products in the economy,

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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Question

Proponents of free markets argue that if all markets were perfectly competitive and if the government allowed prices to be determined by demand and supply, then for all products in the economy,

Answer is not Option C

Proponents of free markets argue that if all markets were perfectly competitive and if the government allowed prices to be determined by de
for all products in the economy,
O A. price would equal marginal cost and total surplus to society would be maximized.
B. marginal cost would equal zero and consumer surplus would be maximized.
C. price would equal marginal cost and consumer surplus would be maximized.
O D. marginal cost would equal zero and total surplus to society would be maximized.

Definition Definition Structure of the market that exists when many buyers and sellers exchange similar commodities and prices are fixed by market forces, demand, and supply. When there is perfect competition, a single business cannot impact the price or market value of the homogenous product.

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