MCQ"In general, an equilibrium of a competitive market maximises the total surplus from trade" This statementQuestion 5Select one:a.is true only if there are no positive or negative externalities in the market.b.is true only if there are positive externalities in production in the market.c.is true only if there are no negative externalities in the market.d.is true in theory, but economic efficiency cannot be achieved in a real market.

Which statement is true? Group of answer choicesA competitive market maximises total surplus as all the gains from trade are realized.In a competitive market all trade for which the MB is greater than or equal to the MC of production take place.If output was increased beyond the traded in a competitive market total surplus would decrease.The competitive equilibrium outcome is Pareto efficient.All of the above.

Determine if each of the following statement is True or False. Explain your reasoning.(a) “Some goods such as stock of fish in the ocean are rival in consumption but non-excludable. Competition between private agents in such markets ensures that an efficient quantity of a good is supplied to the market.”  (7 marks)(b) “A monopoly firm is in the short-run equilibrium making a positive economic profit. An increase in the Fixed Cost of production will lead to a higher price and lower quantity in this market because to maximise profit monopoly will want to increase the price it charges for its product.” (8 marks)(c) “When both demand and supply increase in a given market, the equilibrium price and quantity will always be higher as a result.” (5 marks)(d) If the price of peaches, a substitute for plums, decreases, the demand for plums will increase. The demand curve for plums will shift to the right.  (5 marks)

32.A perfectly competitive market in the short-run will be in equilibrium, where  A. MC = AC  B. MC = MR  C. MC = zero  D. MR=AR

True or false: Perfectly competitive markets lead to efficient production and consumption. Question 9 options: True False

Consider a perfectly competitive market for frozen meals. The demand for frozen meals is given by Pd=100-2Q and the supply of frozen meals is given by Ps=10+Q. Which of the following statements is true at the market equilibrium? Group of answer choicesTotal surplus is equal to 450Consumer surplus is equal to 100Producer surplus is equal to 0Deadweight loss is equal to 0None of the other answers is correct