The Following Graph Depicts the Various Cost Curves for a Representative

question 134

Multiple Choice

The following graph depicts the various cost curves for a representative competitive firm producing quantity Q1:

-Refer to the above graph to answer this question.If the price of the product is P1,what does the graph suggest?

• A)The market is achieving productive efficiency but not necessarily allocative efficiency.
• B)The market is achieving allocative efficiency but not necessarily productive efficiency.
• C)The market is achieving neither productive efficiency nor allocative efficiency.
• D)The market is achieving both allocative efficiency and productive efficiency.

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Definitions:

Ingroup

A social group to which a person psychologically identifies as being a member.

Cohesion

The force or quality of sticking together, often used to describe unity or solidarity within groups.

Social Identity Theory

The theory that people define and evaluate themselves largely in terms of the social groups with which they identify.

Social Dominance

The concept that some individuals or groups hold a higher status within a social hierarchy, often exerting power or influence over others.