The perfectly competitive market structure benefits consumers because
A) firms add a much smaller markup over average cost than firms in any other type of market structure.
B) firms produce high-quality goods at low prices.
C) firms do not produce goods at the lowest possible price in the long run.
D) firms are forced by competitive pressure to be as efficient as possible.
D
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The average fiscal burden on state and local government for each low-skilled immigrant household may be as high as:
A. $5,500 per household per year B. $9,200 per household per year C. $19,500 per household per year D. $31,600 per household per year
Which of the following is not considered part of government spending?
A) a military jet purchased by the federal government B) a nature preserve purchased by a state government C) social security payments to retirees D) teachers' salaries paid by a local government
"Any social planner who implements efficient outcomes will produce the same output in a given market as the competitive market would." In addition to the conditions of the first welfare theorem, which of the following have to hold in order for the statement in quotes to be true?
A. Consumer tastes are quasilinear. B. Consumer tastes are homothetic. C. Production frontiers are homothetic. D. Both (a) and (c). E. Both (b) and (c). F. None of the above.
If a production function is represented as q = L? K?, the long-run average cost curve will be horizontal as long as
A) ? + ? = 0. B) ? + ? = 1. C) q > 0. D) L = K.