A Firm Produces the Quantity of Output at Which P

question 60

Multiple Choice

A firm produces the quantity of output at which P = MC and P = ATC. It follows that the firm is

• A)resource allocative efficient, but not necessarily productive efficient.
• B)productive efficient, but not necessarily resource allocative efficient.
• C)both resource allocative and productive efficient.
• D)neither resource allocative nor productive efficient.