If All Firms Are Profit Maximizers,then the Following Is Assured

question 41

Multiple Choice

If all firms are profit maximizers,then the following is assured:

• A)each firm is productively efficient.
• B)that the economy reaches the production possibilities boundary.
• C)allocative and productive efficiency.
• D)allocative efficiency.
• E)that firms attain the lowest possible average costs.

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Definitions:

Dynamic Pricing

A pricing strategy that allows businesses to adjust prices in real-time based on market demand, competition, and other factors.

Business District

A section of a city where the majority of office buildings, businesses, and commercial activities are concentrated.

Weekend

The part of the week typically dedicated to rest or leisure activities, often Saturday and Sunday for many societies.

Price Elasticity

Measures the responsiveness of demand for a product or service to changes in its price.