Pure competition produces a socially optimal allocation of resources in the long run because:
A. Marginal cost equals marginal revenue
B. Marginal cost equals average total cost
C. Marginal revenue equals price
D. Marginal cost equals price
D. Marginal cost equals price
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A worker is hired in a
A) goods and services market. B) government market. C) product market. D) factor market.
Increasing the federal budget deficit will contribute to increasing the federal government debt
Indicate whether the statement is true or false
Selling Treasury bonds to finance a federal deficit crowds out private investment by driving interest rates down.
a. true b. false
Farmers can choose to produce eggs or milk. If there is an increase in the price of milk then what will be the effect in the egg market?
A. The quantity of eggs demanded will increase. B. Egg demand will decrease. C. Egg supply will increase. D. Egg supply will decrease.