Latoya R.

asked • 12/27/19

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

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

a. social cost/value

b. social surplus

c.private cost/value

d.private surplus






Charles W.

tutor
I think C is the answer as the market represents the private cost (MPC) and the private value (MPB). Negative Externalities always oversupply a good as their price is too low and undersupply a Positive externality as the price is too high. The market price is where the MPC = MPB.
Report

01/03/20

1 Expert Answer

By:

Still looking for help? Get the right answer, fast.

Ask a question for free

Get a free answer to a quick problem.
Most questions answered within 4 hours.

OR

Find an Online Tutor Now

Choose an expert and meet online. No packages or subscriptions, pay only for the time you need.