Competitive Pricing Is Efficient Because

question 187

Multiple Choice

Competitive pricing is efficient because

• A) the price that consumers pay reflects the opportunity cost to society of producing the good.
• B) firms make positive economic profits in long-run equilibrium.
• C) average revenue equals average cost.
• D) firms produce above the minimum efficient scale.

---

Definitions:

Discount Period

A specified period within which a buyer can pay less than the full amount due by taking advantage of a discount offered by the seller.

Customer

An individual or entity that purchases goods or services from a business.

Sales Returns and Allowances

Concessions made to customers for returned merchandise or unsatisfactory goods, reducing sales revenue.

Office Supplies

Items used in offices for daily operations and tasks, including stationery, pens, paper, and other small equipment, often classified as current assets in accounting.