Society will produce ________ if price and marginal cost are equated for all firms.
A. the efficient mix of output
B. the minimum output
C. the maximum output
D. no output
Answer: A
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The process of adjustment to a new long-run equilibrium in a perfectly competitive industry is not complete if
A. other firms want to enter the industry. B. all firms are at the minimum average cost. C. all firms receive zero economic profit. D. no firms want to exit the industry.
The perfectly competitive market structure benefits consumers because
A) firms do not produce goods at the lowest possible price in the long run. B) firms are forced by competitive pressure to be as efficient as possible. C) firms add a much smaller markup over average cost than firms in any other type of market structure. D) firms produce high-quality goods at low prices.
Refer to the information. Average fixed cost is:
Answer the question on the basis of the following information:
What economic concept would be most closely associated with a situation where an aluminum plant expands its operations and uses extensive computerization in the production line to reduce per-unit costs of production?
A. Infrastructure B. Human capital C. Network effects D. Economies of scale