A Perfectly Competitive Market Results in Efficiency Because

question 7

Multiple Choice

A perfectly competitive market results in efficiency because

• A)Price is driven down to minimum ATC.
• B)Price rises high enough to equal marginal cost.
• C)Zero economic profit is achieved.

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Definitions:

Referent Power

Power derived from being well liked by others.

Legitimate Power

A form of authority where power is granted through societal structures, titles, or positions, deemed appropriate and recognized by those governed.

Employee Effectiveness

The extent to which employees successfully achieve the goals and objectives of the organization.

Power Holder

An individual or group that possesses and exercises authority or influence over others in a particular context.