In the Long Run, a Perfectly Competitive Industry Is Allocatively

question 139

Multiple Choice

In the long run, a perfectly competitive industry is allocatively efficient because

• A)the opportunity cost of resources needed to produce the last unit of output just equals the marginal value to consumers of the last unit
• B)it maximizes producer surplus
• C)consumer surplus could be larger if the price were lower
• D)production occurs at the lowest average total cost
• E)marginal costs are low

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Definitions:

Eastern Division

A segment or geographical section of a company that operates in the eastern region, often with its management structure and performance metrics.

Western Division

A geographical or organizational subdivision of a company that operates in the western region.

Internal Colonialism

Involves one race or ethnic group subjugating another in the same country. It prevents assimilation by segregating the subordinate group in terms of jobs, housing, and social contacts.

Domination

Domination is the exercise of control or influence over someone or something, often in a way that limits freedom and autonomy.