🏷️ LIMITED TIME OFFER: GET 20% OFF GRADE+ YEARLY SUBSCRIPTION →
Log in
Economics
4
answers
0
watching
55
views

A perfectly competitive industry is said to be efficient because the
a) marginal cost of production of the last unit of output is minimized
b) product is standardized across firms in the industry
c) market price of the good is equal to economic profit for all firms in the industry
d) average total cost of production of the industry's output is minimized

Watch
4
answers
0
watching
55
views

For unlimited access to Homework Help, a Homework+ subscription is required.

Unlock all answers

Get 1 free homework help answer.
Already have an account? Log in
Share
Already have an account? Log in
Share
Already have an account? Log in
Share
Chika Ilonah
Chika IlonahLv10
14 Oct 2020
Already have an account? Log in
Share

Related textbook solutions

Principles of Economics
2nd Edition, 2017
Openstax
ISBN: 9781947172364
Principles of Macroeconomics
2 Edition,
Openstax
ISBN: 9781947172388
Principles of Microeconomics
2 Edition,
Openstax
ISBN: 9781947172340

Related questions

32. Which of the following is not a difference between monopolies and perfectly competitive markets?

A. Monopolies face downward sloping demand curves while perfectly competitive firms face horizontal demand curves.

B. Monopolies charge a price higher than marginal cost while perfectly competitive firms charge a price equal to marginal cost.

C. Monopolies can earn profits in the long run while perfectly competitive firms break even.

D. Monopolies choose to produce the quantity at which marginal revenue equals marginal cost while perfectly competitive firms do not.

40. Which of the following statements is not correct?

A. Both monopolies and monopolistically competitive firms can earn economic profits in the long run.

B. Both monopolistically competitive and perfectly competitive firms can earn economic profits in the short run.

C. Only competitive firms produce the welfare-maximizing level of output.

D. Firms in perfect competition, monopolistic competition, and monopoly maximize profits by producing where marginal revenue equals marginal cost.

43. A monopolistically competitive firm is currently producing 20 units of output. At this level of output the firm is charging a price equal to $20, has marginal revenue equal to $12, has marginal cost equal to $12, and has average total cost equal to $18. From this information we can infer that

A. the profits of the firm are negative.

B. firms are likely to leave this market in the long run.

C. the firm is currently maximizing its profit.

D. All of the above are correct.

Are perfectly competitive markets productively efficient in the long run?

A. Yes, because firms produce at the lowest average cost possible.

B. Yes, because firms produce where the marginal benefit to consumers equals the marginal cost of production.

C. No, because firms earn zero economic profits.

D. No, because firms will not shut down unless the price is less than the average variable cost of production.

E. Both a and b.

Are perfectly competitive markets productively efficient in the long run?

a. Yes, because firms produce at the lowest average cost possible.

b. Yes, because firms produce where the marginal benefit to consumers equals the marginal cost of production.

c. No, because firms earn zero economic profits.

d. No, because firms will not shut down unless price is less than the average variable cost of production.

e. Both a and b.

Weekly leaderboard

Home
Homework Help 3,900,000
Economics 400,000
Start filling in the gaps now
Log in