Perfectly Competitive Markets Are Efficient Because

question 182

Multiple Choice

Perfectly competitive markets are efficient because

• A) they always reach equilibrium.
• B) firms in the market are price takers.
• C) the cost to society for producing the goods is exactly equal to the value that society places on the good.
• D) the long run equilibrium assures that the prices of resources will not increase.

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Definitions:

Microevolution

The process of evolution over a short period that results in changes in gene frequency within a population, leading to slight adaptations or shifts.

Allele Frequencies

The proportion of all copies of a given gene variant (allele) present in a particular population.

Generations

Sequential stages in the familial lineage, where an individual's successors are considered a new generation.

Disruptive Selection

A special type of directional selection in which changes in the environment favor two or more variant phenotypes at the expense of the mean. Compare with stabilizing selection and directional selection.