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In the absence of externalities, which of the following is true of a competitive market in equilibrium?

a) Consumer surplus is maximized.
b) Producer surplus is maximized.
c) Marginal benefit exceeds marginal cost.
d) Marginal social benefit equals marginal social cost.
e) Consumer surplus equals producer surplus

User Sunney
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1 Answer

7 votes

Answer:

a) Consumer surplus is maximized

User Aditya Giri
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