Which of the Following Is True of Perfect Competition

question 58

Multiple Choice

Which of the following is true of perfect competition?

• A) Pareto e?ciency holds in perfect competition.
• B) Firms operate at the highest point on their long-run cost curve.
• C) The price in the market is higher than the marginal cost.
• D) Firms make the highest level of output at the highest possible cost.

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Definitions:

Cost Approach

An evaluation method that estimates the value of an asset based on the cost to replace or reproduce it.

Ethical Companies

Businesses that operate in ways that are considered morally right, adhering to principles of fairness, honesty, and respect for people and the planet.

Recoups All Costs

A situation where the total expenses of an investment or project are fully recovered.

Competitive Bidding

Competitive bidding is a procurement process where several suppliers submit bids to win a contract, offering the best terms in terms of price, quality, and service.