Is It Possible for a Perfectly Competitive Firm to Be

question 116

Multiple Choice

Is it possible for a perfectly competitive firm to be maximizing profits, but not achieving resource allocative efficiency?

• A)Definitely yes, because it is impossible to achieve both at the same time.
• B)Yes, it is possible, but it is not possible to minimize losses without also achieving resource allocative efficiency.
• C)No, it is not possible, because the output at which MR = MC is also the output at which P = MC.
• D)There is not enough information to answer this question.

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Definitions:

Lookup Wizard

A feature in database and spreadsheet software that helps users create a lookup field to find matching values in a table or range.

Rename

Rename means changing the name of a file, folder, or identifier to something else while maintaining its contents or value.

Field

An element in databases or forms that can contain data, like a column in a database table or a textbox in a form where information can be entered or displayed.

Blank Desktop Database

A new, empty database file created in database software like Microsoft Access, ready for data entry and design customization.