Pure Competition Produces a Socially Optimal Allocation of Resources in the Long

question 117

Multiple Choice

Pure competition produces a socially optimal allocation of resources in the long run because

• A) marginal cost equals marginal revenue.
• B) marginal cost equals average total cost.
• C) marginal revenue equals price.
• D) marginal cost equals price.

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Definitions:

Diesel Fuel

A type of fuel derived from petroleum used in diesel engines, known for its energy efficiency.

Environmental Impact

The effect that the actions of individuals, businesses, and industries have on the natural world.

Extended Supply Chain

The inclusion of additional elements in the supply chain, such as second-tier suppliers and distributers, to enhance competitiveness and efficiency.

Main Plant

The primary facility where a company's production activities are concentrated or where its main products are manufactured.