Imperfectly Competitive Firms May Allocate Resources Inefficiently Because They Produce

question 29

Multiple Choice

Imperfectly competitive firms may allocate resources inefficiently because they produce at a level of output where:

• A)average total cost is at its lowest point.
• B)price equals marginal cost.
• C)marginal revenue is greater than marginal cost.
• D)price is greater than marginal cost.

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Definitions:

Wine

An alcoholic beverage made from fermented grapes or other fruits.

Commodity

represents a basic good used in commerce that is interchangeable with other goods of the same type.

Produce

Refers to agricultural products and goods that have been grown or farmed.

Industry

The sector of an economy that is involved in the production of goods or related services.