Resource Allocative Efficiency Exists for a Perfectly Competitive Firm Because

question 95

Multiple Choice

Resource allocative efficiency exists for a perfectly competitive firm because

• A)price equals marginal revenue and the firm equates marginal revenue and marginal cost to maximize profits.
• B)price equals average total cost and the firm equates marginal revenue and average total cost to maximize profits.
• C)price is greater than marginal revenue and the firm equates marginal revenue with average total cost to maximize profits.
• D)price is less than marginal revenue and the firm equates marginal cost and marginal revenue to maximize profits.
• E)none of the above

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