A Perfectly Competitive Industry Is Said to Be Efficient Because

question 50

Multiple Choice

A perfectly competitive industry is said to be efficient because the:

• A)marginal cost of production of the last unit of output is minimized in the long run.
• B)product is standardized across firms in the industry.
• C)average total cost of production of the industry's output is minimized in the long run.
• D)market price of the good is equal to economic profit for all firms in the industry.

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Definitions:

Shareholders' Equity

The residual interest in the assets of a corporation that remains after deducting its liabilities, representing ownership interest.

Cash Flow

The total amount of money being transferred into and out of a business, especially affecting liquidity.

Investing Activities

Transactions related to the acquisition or disposal of long-term assets and investments that are not considered cash equivalents.

IFRS

International Financial Reporting Standards, a set of accounting standards developed by the International Accounting Standards Board (IASB) that is global in scope.