In Perfect Competition,the Marginal Revenue Curve Is a Vertical Line

question 112

True/False

In perfect competition,the marginal revenue curve is a vertical line equal to the price per unit at all volumes of sales.

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Definitions:

Automobile Production

is the series of processes involved in manufacturing automobiles, including assembly, painting, and quality control, among others.

Allocative Efficiency

Allocative efficiency occurs when resources are distributed in a way that maximizes the net benefit to society, matching consumer preferences with production.

Productive Efficiency

A state where an economy or entity is operating in such a way that it cannot produce more of one good without reducing the output of another good.

Minimum ATC

The lowest point on the average total cost curve, representing the most efficient scale of production.