A Competitive fiRm Is Said to Be Allocatively Efficient If

question 2

Multiple Choice

A competitive firm is said to be allocatively efficient if _____.

• A) it earns supernormal profits
• B) its price equals marginal cost
• C) its marginal cost equals average cost
• D) its average cost is minimum

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Definitions:

Control Group

In experimental research, the group of subjects that does not receive the treatment or intervention being tested, serving as a benchmark to measure the effect of the treatment.

Report Bias

A tendency to present information in a way that selectively overlooks, underrepresents, or exaggerates certain viewpoints or data.

Quit Smoking

The process of discontinuing tobacco smoking, which often involves overcoming addiction to nicotine.

Treatment

Procedures or applications designed to alleviate or cure a disease or disorder.