Under Perfect Competition, the Efficient Level of Output Is Produced

question 101

Multiple Choice

Under perfect competition, the efficient level of output is produced because

• A) government regulates the output level that must be produced.
• B) firms earn only a normal profit in the long run.
• C) firms can earn an economic profit in the long run.
• D) price equals marginal cost.

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Definitions:

Employee Share Ownership Plans

Programs that enable employees to own a stake in the company they work for, fostering a sense of ownership and incentivizing performance.

Share Options

Are financial derivatives that give the holder the right, but not the obligation, to buy or sell shares of a company at a predetermined price within a specified timeframe.

Incentive

A motivational factor or reward that encourages a person or group to act in a certain way or achieve higher levels of performance.

Gain-sharing

A performance-related pay strategy that offers employees financial rewards based on improvements in the company's productivity or performance.