At the Level of the Industry,the Condition for Productive Efficiency

question 62

Multiple Choice

At the level of the industry,the condition for productive efficiency is that

• A)goods are allocated equitably.
• B)there are no idle resources in the industry.
• C)MC = P for all goods.
• D)MRP = P for all inputs.
• E)MC is equal for all firms in the industry.

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Definitions:

Monopolistically Competitive Industry

An industry characterized by many firms, differentiated products, and free entry and exit.

Market Share

The fraction of the total industry output accounted for by a given producer’s output.

Economic Profits

Profit that exceeds both the total explicit and implicit costs, often signaling above-normal returns in competitive markets.

Optimal Level

The most efficient, effective, or desirable point or degree for a specific outcome or condition.