In a competitive market, the equilibrium price represents the ____________ ____________.

Question

In a competitive market, the equilibrium price represents the ____________ ____________.

a. social cost/value

b. social surplus

c.private cost/value

d.private surplus

Answer 1

In the absence of Externalities tHe Price will equal both the Private and Social Marginal costs and Marginal benefits. The Word Marginal is important. Your answers choices are ambiguous